PRE FINAL ROUND

1. A contingent liability assumed in a business combination

a. is recognized only if there is present obligation, probable outflow of economic resources, and can be
measured reliably
b. is not accounted for by the acquirer if the contingent liability has an improbable outflow of economic
resources
c. is not accounted for by the acquirer if the contingent liability has an improbable outflow of economic
resources and is recognized only if there is present obligation, probable outflow of economic
resources, and can be measured reliably
d. is recognized even if it has an improbable outflow of economic resources for as long as there is
present obligation and the fair value of the obligation can be measured reliably

2. When push-down accounting has been implemented

a. The minority interest in the subsidiary is shown on its own line in the equity section of the subsidiary
only balance sheet.
b. Any debt incurred by the parent in acquiring the subsidiary is recorded at its market value by the
subsidiary.
c. Subsidiary records have been adjusted to reflect the market value increases resulting from the
purchase by a parent company.
d. The issuer and the combiner's equity sections are merged.

3. On December 20, 20x1, Juan Co. acquired inventory from Joe Co., an unrelated foreign entity. Payment is
due on January 4, 20x2. Juan Co. uses a calendar year .period. If Juan Co. appropriately did not recognize
any foreign exchange gain or loss in its 20x1 profit or loss, what could have been the most likely reason?
a. The change in exchange rates as of the end of the reporting period is deferred and is
recognized only in 20x2.
b. The change in exchange rates is recognized in other comprehensive income.
c. The transaction is denominated in Juan’s functional currency
d. Juan is a wholly owned subsidiary of Joe. ,
 The statements of financial position of WEAK and STRONG immediately before the business
combination are (in thousands):
WEAK STRONG
Current assets P500 P700
Non-current assets 1,300 3,000
Total assets 1,800 3,700
Current liabilities P300 P600
Non-current liabilities 400 1,100
Total liabilities 700 1,700
Equity
Retained earnings 800 1,400
Issued equity
100,000 ordinary shares 300
60,000 ordinary shares 600
Total shareholders' equity 1,100 2,000
Total liabilities and Equity 1,800 3,700
On March 30, 20x1 WEAK issues 2.5 shares in exchange for each ordinary share of STRONG. All of
STRONG's shareholders exchange their shares in STRONG. Therefore, WEAK issues 150 ordinary
shares in exchange for all 60 ordinary shares of STRONG. The fair value of each ordinary share of
STRONG at March 30, 20x1 is P40. The quoted market price of WEAKs ordinary shares at that date is
P16. The fair values of WEAK's identifiable assets and liabilities at March 30, 20x1 are the same as their
carrying amounts, except that the fair value of WEAK's non-current assets at March 30, 20x1 is
P1,500,000. WEAK is the legal parent and accounting acquiree. On the other hand, STRONG is the legal
subsidiary and accounting acquirer.

4. What is the amount of goodwill to be reported in the consolidated financial statements?

a. 200,000 c. 400,000
b. 300,000 d. 500,000

5. KAZUYA Construction Company has consistently used the percentage-of-completion method. On

January 10, 20x1, KAZUYA began work on a P6,000,000 construction contract. At the inception date, the
estimated cost of construction was P4,500,000. The following data relate to the progress of the contract:
Income recognized at 12/31/20x1 P600,000
Costs incurred 1/10/1013 through 12/31/20x2 3,600,000
Estimated cost to complete at 12/31/20x2 1,200,000
How much income should KAZUYA recognize for the year ended December 31, 20x2?
a. 600,000 c. 525,000
b. 900,000 d. 300,000
 TOP: Partnership, Dissolution, Withdrawal; Difficulty: Medium
6. The December 31, 2015, the statement of financial position of the Bob, Coco, Dhi Partnership is
summarized as follows:
Cash P100,000
Other Assets at cost 500,000
Total Assets 600,000
Coco, Loan P100,000
Bob, Capital 100,000
Coco, Capital 200,000
Dhi, Capital 200,000
Total 600,000
The partners share profits and losses as follows: Bob, 20%; Coco, 30% and Dhi, 50%. CC is retiring from
the partnership and the partners have agreed that "other assets" should be adjusted to their fair value of
P600,000 at December 31, 2015. They further agree that Coco will receive P244,000 cash for his
partnership interest exclusive of the loan, which is to be paid in full. No goodwill implied by Coco's
payment will be recorded. After Coco's retirement, the capital balances of Bob and Dhi, respectively, will
be:
a. P101,714 and P254,286 c. P100,000 and P200,000
b. P116,000 and P240,000 d. P73,143 and P182,857

7. Brett and Troy are partners whose total capital is P1,200,000. The capital ratio is 6:4 and the profit and
loss ratio is 3:2 to Brett and Troy, respectively. David is admitted as a partner upon investing P600,000
for a 1/4 interest in the firm, and profits are to be shared 3:2:3, to Brett, Troy and David, respectively.
Given the choice between goodwill and bonus methods, David will
a. Prefer bonus method due to David’s advantage P75,000
b. Prefer bonus method due to David’s advantage of P150,000
c. Prefer goodwill method due to David’s advantage of P75.000
d. Prefer goodwill method due to David’s advantage of P150,000
8. Congestions have always been a way of life most specially in Metro Manila. One way to decongest traffic
and minimize use of gasoline is to phase out the internationally Known jeepneys as well as the use of
dilapidated, smoke-belching and fully depreciated buses. To partially solve the problem as well as to
motivate car owners to use public transportation, an underground monorail system similar to that of
Hongkong was the solution. The system covered the stretch of the famous Edsa, from Roxas Boulevard to
Bonifacio Monument and would go as far as the area of Malabon as well as Navotas, a thickly populated
fishermen's village. The project covers several stages and was awarded to different contractors here and
abroad.

Competitive bids were held for stage one of the project. The bids are:
Northern City Construction P560 billion
Hongkong Systems 392 billion
JJ Ram Construction Company 400 billion
A project that undergoes competitive bid is normally awarded to the lowest bidder. However, the
government reserves the right to reject any and all bids after a careful review of the track record of the
bidders. Even though JJ Ram Construction Company had the second lowest bid. Stage one of the project
was awarded to them. The contract price was P400 billion pesos which was covered by a two-year
construction contract. The following data were available from the records for the years
2016 and 2017:
2016 2017
(In billion of pesos)
Costs incurred P120 P216
Progress billings 100 300
Cash collections on billings 96 304
Estimated costs to complete 216 -
How much is the income from construction in 2017, using the cost to cost percentage of completion
method?
a. P161.143 billion c. P41.143 billion
b. P64 billion d. P22.867 billion
 9 Atoy and Bitoy are partners. On March 1, 2015 when the total obligation of the partnership was P80,000,
Caloy was admitted as a new partner. At the time of Caloy's admission, the partnership was indebted, to
Manoy for P50,000 and Nonoy for P30,000, On June 1, 2016 the partnership borrowed from Otoy
P20,000 and P40,000 from Popoy. On September 1, 2017, the partnership became insolvent leaving an
obligation totaling P140,000 and partnership assets amounting in P30,000. The creditors are going after
the separate properties of the partners to satisfy their remaining claims. How are the creditors' claims
satisfied?
ANSWER 1: Manoy and Nonoy can go after the separate properties of Atoy and Bitoy, but Caloy's
properties are not answerable to their claims.
ANSWER 2: Otoy and Popoy can go after the separate properties of Atoy, Bitoy and Caloy. Which of
the following is correct?
a. Answer #1 is wrong, but answer #2 is correct
b. Answer #1 is correct, but answer #2 is wrong
c. Both answers are correct,
d. Both answers are wrong.

10. Asiong borrowed P1 million from a bank, secured by a mortgage on his land. Without his consent, his friend
Boyong paid the whole loan. Since Asiong benefited from the payment, can Boyong compel the bank to
subrogate him in its right as mortgagee of Asiong's land?
a. No, since Boyong paid for Asiong's loan without his approval
b. No, but the bank can foreclose and pay Boyong back.
c. Yes, since it is but right that Boyong be able to get back his money and, if not, to foreclose
the mortgage in the manner of the bank.
d. Yes, since a change of creditor took place by novation with the bank's consent.

1. During the current year, a nonprofit organization received a donation of equipment from a local computer
retailer. The equipment is expected to have a useful life of 3 years. The donor placed no restriction on
how long the computer equipment was to be used and the nonprofit organization has an accounting
policy which does not imply a time restriction on gift of long-lived asset. In the statement of activities
for the current year, the donation of computer equipment should be reported
a. As either increase in temporarily restricted or unrestricted net assets.
b. As an increase in temporarily restricted net assets.
c. Only in the notes to financial statements.
d. As an increase in unrestricted net assets.
2. United Hope, a private not-for-profit voluntary health and w e lfa reorganization, received the fo llo w in
g contributions in 2012:
I From donors who stipulated that the money should not be spent until 2013.
II From donors who stipulated that the contributions should be used for the acquisition of equipment,
none of which was acquired in 2012.
Which events increased temporarily restricted net assets for the year ended December 31, 2012?
a. Both I and II c. II only
b. I only d. Neither I nor II
3. Which of the following statements of a private nonprofit hospital reports the changes in unrestricted,
temporarily restricted and permanently restricted net assets for a time period?
 I Statement of financial position
II Statement of operations
III Statement of changes in net assets
a. I and III only c. II and III only
b. III only d. I and II only
4. In the statement of activities for nonprofit performing arts center, expenses should be deducted from
I Unrestricted revenue
II Temporarily restricted revenue
III Permanently restricted revenue
a. Both I and II c. I, II and III
b. I only d. II only
5. How should a nonprofit organization report depreciation in its statement of activities?
a. It should be included as an increase in temporarily restricted net assets.
b. It should be reclassified from unrestricted net assets to temporarily restricted net assets,
depending on donor-imposed restrictions on the assets.
c. It should be included as a decrease in unrestricted net assets.
d. It should not be included.
6. A nonprofit college received on April 1, 2012 a certain amount from a donor with the stipulation that the
contribution be used to support faculty teaching during the fiscal year beginning January 1, 2013. On
January 15. 2013, the administrators of the college awarded research grants equal to the contribution in
accordance with the instruction o f the donor. For the year ended December 31, 2012. the college should
report the contribution as
a. An increase in the fund balance in the statement of financial position
b. Temporarily restricted revenue in the statement of activities
c. Temporarily restricted deferred revenue in the statement of activities
d. Unrestricted revenue in the statement of activities

7. Exchange differences arising on a monetary item that forms part of a reporting entity's net investment in a
foreign operation shall be recognized
I In profit or loss in the separate financial statements of the reporting entity or the individual statements
of the foreign operation.
II In other comprehensive income in the consolidated financial statements of the reporting entity and the
foreign operation and recognized in profit or loss on disposal of the net investment.
a. I only c. Both I and II
b. Neither I nor II d. II only
8. An entity is nearing completion of a construction contract but the work has not gone to plan due to certain
issues.
I The client has requested a variation in the contract by requiring new security devices to be fitted at a
certain additional cost. The client has accepted responsibility for the additional cost.
II The entity has carried out additional work on the contract as there had been building errors. The client
refuses to accept responsibility for the additional work.
Which of the issues should be included in contract revenue?
a. Neither I nor II c. II only
b. Both I and II d. I only
9. Contract costs of a construction contract comprise all of the following, except
a. Costs that directly relate to the specific contract.
b. Costs that are attributable to contract activity in general and can be allocated to the
contract.
c. General administration costs for which reimbursement is not specified in the contract.
 d. Such other costs that are specifically chargeable to the., customer under the terms of the
contract.
10. A construction entity has the following costs on its contracts:
I Project managers' costs
II Destruction of an existing building
III Restoration of an old factory
Which costs may be included within contract costs?
a. I, II and III c. II and III only
b. I and III only d. I and II only

FINAL ROUND
1. During the current year, a nonprofit organization received a donation of equipment from a local computer
retailer. The equipment is expected to have a useful life of 3 years. The donor placed no restriction on
how long the computer equipment was to be used and the nonprofit organization has an accounting policy
which does not imply a time restriction on gift of long-lived asset. In the statement of activities for the
current year, the donation of computer equipment should be reported
a. As either increase in temporarily restricted or unrestricted net assets.
b. As an increase in temporarily restricted net assets.
c. Only in the notes to financial statements.
d. As an increase in unrestricted net assets.

2. In the accounting statement of affairs, the gains or losses upon liquidation would equal
a. total estimated realizable value of assets minus the amount remaining for Class 7
unsecured creditors.
b. total estimated realizable value of assets minus the amount assigned to secured creditors.
c. net book value of assets minus book value of liabilities.
d. the book value of assets minus their realizable value.

3. The ratio called "dividend to general unsecured creditors" is calculated by which of the following
formulas?
 a. Net estimated proceeds available to unsecured creditors without priority divided by Total
claims of unsecured creditors without priority.
b. Estimated realizable value of all debtor assets divided by Book value of debtor assets
c. Estimated amount available for unsecured creditors with/without priority divided by Total
claims of all unsecured creditors with/without priority
d. Estimated gain/loss on liquidation divided by Total estimated net realizable value of
debtor assets

4 . SANDROCK Corp. owns a subsidiary in Japan whose balance sheet in Japanese Yen for the last years
follow:
Dec 31, 20x1 Dec 31, 20x2
Assets
Cash and Cash equivalents ¥30,000 ¥25,000
Receivables 122,500 147,500
Inventory 160,000 170,000
Property and Equipment, net 255,000 230,000
Total Assets ¥ 567,500 ¥ 572,500
Liabilities and Equity
Accounts Payable ¥55,000 ¥75,000
Long-term debt 322,500 285,000
Common stock 115,000 115,000
Retained earnings 75,000 97,500
Total Liabilities and Equity ¥ 567,500 ¥ 572,500
Relevant exchange rates are:
January 1, 20x1 ¥ 1 = P 45
December 31, 20x1 ¥ 1 = P 42.50
December 31, 20x2 ¥ 1 = P 47.50
September 12, 20x1 ¥ 1 = P 40
SANDROCK formed the subsidiary on January 1, 20x1. Income of the subsidiary was earned evenly
throughout the years and the subsidiary declared dividends worth ¥15,000 on September 12, 20x1 and
none were declared during 20x0. How much is the cumulative translation adjustment for 20x2?
a. P568,750 c. P875,000
b. P625,000 d. P1,006,250
5. The SMDC Construction Company was the lowest bidder on an office building construction contract. The
contract bid was P70 million, with an estimated cost to complete the project of P60 million. The contract
period was 34 months starting January 2016. The company uses the cost-to-cost method of estimating
earnings, Because of changes requested by the customer, the contract price was adjusted downward to P
65 million on January 1, 2017.
A record of construction activities for the years 2016-2019 follows; (in millions)
2016 2017 2018 2019
Actual cost-current year P25 P33 P4.1 -
Progress billings 21 31 13 -
Cash receipts 18 30 10 P7
Estimated costs to complete 35 4 - -
Compute the gross profit (loss) realized in 2017
a. P3.317 million c. P(1.360) million
b. P4.167 million d. P2.806 million

6. CASA VERDE sells franchises to independent operators throughout the northwestern part of the United
States and some other countries. The contract with four (4) franchisees includes the following provisions:
1 The franchisee is charged an initial fee of P800,000. Of this amount, P300,000 is payable when the
agreement is signed, and a P100,000 non-interest-bearing note at the end of each of five subsequent
years.
2 Alt, of the initial franchise fee collected by CASA VERDE is to be refunded and the remaining
obligation canceled if, for any reason, the franchisee fails to open his or her franchise.
3 In return for the initial franchise fee, CASA VERDE agrees to (a) assist the franchisee in selecting the
location for the business, (b) negotiate the lease for the land, (c) obtain financing and assist with
building design, (d) supervise construction, (e) establish accounting and tax records, and (f) provide
expert advice over a 5-year period relating to such matters as employee and management training,
quality control, and promotion.
4 In addition to the initial franchise fee, the franchisee is required to pay to CASA VERDE a monthly
fee of 2% of sales for menu planning, recipe innovations, and the privilege of purchasing ingredients
from CASA VERDE at or below prevailing market prices.
5 The franchisees will replace all equipment at the end of the 10th year and agree to buy them from
INASAL at a discount of P50,000.
Management of CASA VERDE; estimates that the value of the services rendered to each franchisee at the
time the contract is signed amounts to at least P300,000. Ail franchisees to date have opened their
locations at the scheduled time and none have defaulted on any of the notes receivable. The credit ratings
of all franchisees would entitle them to borrow at the current interest rate of 10%. The franchise revenue
earned during the year must be:
a. P1,440,000 c. P1,516,000
b. P1,200,000 d. P2,716,000
7. SM Corporation, which began business on January 1, 2017, appropriately uses the instalment sales
method of accounting for tax purposes, but records net income under the accrual method. The following
data were obtained for the years 2017 and 2018:
2017 2018
Instalment sales P7,500,000 P8,400,000
Cost of instalment sales. 5,250,000 6,048,000
General & administrative expenses 700,000 840,000
Outstanding accounts on sales of 2017 4,400,000 1,400,000
Outstanding accounts on sales of 2018 -0- 4,000,000
A 2017 sale resulted in default in 2018. At the date of default, the balance on the instalment receivable
was P120,000, end the repossessed merchandise had a fair value of P80,000. Determine the net income
for the year 2018 under the instalment method and full accrual method.
a. Instalment method, P1,252,000; Full accrual method, P1,472,000.
b. Instalment method, P1,472,000; Full accrual method, P1,252,000.
c. Instalment method, P2,132,000; Full accrual method, P2,352,000
d. Instalment method, P1,288,000; Full accrual method, P1,392,000

8. Samsung Corporation owns 70 percent of Sony Company’s common stock, acquired January 1, 2017.
Goodwill from the investment, is impaired for P20,000 during the current year (minority is measured as a
direct percentage of the fair value of Sony’s net assets). Sony regularly sells merchandise to Samsung at
150 percent of Sony’s cost. Samsung’s December 31, 2017 and 2018 inventories include goods purchased
intercompany of P112,500 and P33,000, respectively. The separate incomes (do not include investment
income) of Samsung and Sony for 2018 are summarized as follows:
Samsung Sony
Sales P1,200,000 P800,000
Cost of sales (600,000) (500,000)
Other expenses (400,000) (100,000)
Separate income P200,000 P200,000
Total consolidated income should be allocated to the owners of the parent and minority interest income in
the amounts of
a. P 346,500 and P60,000, respectively. c. P 338,550 and P67,950, respectively
b. P 344,550 and P61,950, respectively d. P 346,500 and P67,950, respectively.

9. The accounts of Arellano Corporation, a Filipino corporation, shows P81,300,000 accounts receivable and
P38,900,000 accounts payable at December 31, 2009, before adjusting entries are made. An analysis of
the balances reveals the following:
Accounts receivable
Receivable denominated in Philippine Pesos P28,500,000
Receivable denominated in 34,700,000 Japanese Yen 11,800,000
Receivable denominated in 804,000 U.S. Dollars 41,000,000
Accounts payable
 Payable denominated in Philippine Pesos P6,850,000
Payable denominated in 200,000 Canadian Dollars 7,600,000
Payable denominated in 72,000,000 Japanese Yen 24,450,000
Current exchange rates for Japanese Yen, U. S. Dollars, and Canadian Dollars at December 31, 2009 are
P0.3456, P51.39, and P38.55, respectively.

Determine the foreign currency exchange gain or loss that must appear on the income statement of
Arellano Corporation for the year ended December 31, 2009.
a. P543,200 loss c. P33,320 loss
b. P33,320 gain d. P509,880 gain

10. Atoy and Bitoy are partners. On March 1, 2015 when the total obligation of the partnership was
P80,000, Caloy was admitted as a new partner. At the time of Caloy's admission, the partnership was
indebted, to Manoy for P50,000 and Nonoy for P30,000, On June 1, 2016 the partnership borrowed from
Otoy P20,000 and P40,000 from Popoy. On September 1, 2017, the partnership became insolvent leaving
an obligation totaling P140,000 and partnership assets amounting in P30,000. The creditors are going
after the separate properties of the partners to satisfy their remaining claims. How are the creditors' claims
satisfied?
ANSWER 1: Manoy and Nonoy can go after the separate properties of Atoy and Bitoy, but Caloy's
properties are not answerable to their claims.
ANSWER 2: Otoy and Popoy can go after the separate properties of Atoy, Bitoy and Caloy.
Which of the following is correct?
a. Answer #1 is wrong, but answer #2 is correct
b. Answer #1 is correct, but answer #2 is wrong
c. Both answers are correct,
d. Both answers are wrong.

11. When work to be done and costs to be incurred on a long-term contract can be estimated reliably, which
of the following methods of revenue recognition is preferable?
a. Completion of production method
b. Percentage of completion method
c. Either percentage of completion or cost recovery method
d. Cost recovery method
12. The percentage of completion method must be used when certain conditions exist. Which of the
following is not one of the conditions?
a. Total contract revenue can be measured reliably.
b. It is probable that the economic benefits associated with the contract will flow to the
entity.
c. The client can be expected to satisfy some of the obligations under the contract.
d. Estimates of progress toward completion, revenue and costs can be estimated reliably.
13. In accounting for a long-term construction contract using the percentage of completion method, the
amount of income recognized in any year would be added to
a. Construction in progress c. Progress billings on contracts
b. Deferred revenue d. Property, plant, and equipment
14. In accounting for a long-term construction contract using the percentage of completion method, the gross
profit recognized during the first year would be the estimated total gross profit from the contract
multiplied by the percentage of the costs incurred during the year to the
a. Unbilled portion of the contract price c. Total contract price
b. Total costs incurred to date d. Total estimated cost

15. When should an expected loss on a long-term construction contract be recognized?

Cost recovery Percentage of completion
a. Immediately Immediately
b. Contract complete Over life of project
c. Immediately Over life of project
d. Contract complete Immediately

THE NEXT ITEM(S) IS/ARE BASED ON THE FOLLOWING

PRIA Manufacturing Company produces a plastic toy in a two-stage molding and finishing operation.
The company uses the weighted average method of process costing. During June, the following data were
recorded for the Finishing Department.
Units of beginning work in process inventory 10,000
Percentage of completion of beg inventory 25%
Cost of direct materials in beg WIP P0
Units started 70,000
Units completed 50,000
Units in ending WIP inventory 20,000
Percentage of completion of ending units 95%
Spoiled units 10,000
Costs added during current period:
Direct materials P655,200
Direct labor P635,600
Manufacturing overhead P616,000
WIP, beg:
Transferred In costs P82,900
Conversion costs P42,000
Costs of units transferred in during current period P647,500
Conversion costs are incurred evenly during the process. All direct materials costs are incurred when
production is 90% complete. The inspection point is at 80% stage of production. Normal spoilage is 10%
of all good units that pass inspection.

16. What are the equivalents units of production for direct materials and conversion costs?
Direct materials Conversion costs
a. 70,000 75,000 c. 50,000 69,000
b. 70,000 77,000 d. 60,000 77,000
17. RATCHET Co. began operations on January 1, 20x1 and appropriately uses the installment method of
accounting. The following information pertains to RATCHET's operations for 20x1:
Installment sales P800,000
Cost of installment sales 480,000
General and administrative expenses 80,000
Collections on installment sales 300,000
The balance in the deferred gross profit account at December 31, 20x1 should be
a. 320,000 c. 150,000
b. 200,000 d. 120,000
 THE NEXT ITEM(S) IS/ARE BASED ON THE FOLLOWING
X Corporation owns 80 percent of Y Corporation's common stock and 40 percent of Z Corporation's
common stock. Additionally, Y Corporation owns 35 percent of Z Corporation's common stock. The
acquisitions were made at book values. The following
Information is available for 20x1:
X Y Z
Separate Operating income 100,000 50,000 25,000
Dividends declared 30,000 20,000 10,000

18. Based on the information provided, what amount of income will be assigned to the non-controlling
interest in the 20x1 consolidated income statement?
a. 18,000 c. 25,000
b. 33,750 d. 23,750

19. MINI SO. Inc purchased a Cadillac automobile with little cash down and signed a note, secured by the
Cadillac, for 48 easy monthly payments. When the company files for bankruptcy, the balance due on the
Cadillac amount to P6,000,000. The car has a book value of P8,000,000 and a net realizable value of
P4,000,000. The unsecured creditors of MINI SO. can expect to receive 50% of their claims. In the
liquidation, the bank that holds the note on the Cadillac should receive:
a. 5,000,000 c. 3,000,000
b. 4,000,000 d. 6,000,000
20. KAZUYA Construction Company has consistently used the percentage-of-completion method. On
January 10, 20x1, KAZUYA began work on a P6,000,000 construction contract. At the inception date,
the estimated cost of construction was P4,500,000. The following data relate to the progress of the
contract:
Income recognized at 12/31/20x1 P600,000
Costs incurred 1/10/1013 through 12/31/20x2 3,600,000
Estimated cost to complete at 12/31/20x2 1,200,000
How much income should KAZUYA recognize for the year ended December 31, 20x2?
a. 600,000 c. 525,000
b. 900,000 d. 300,000