Revenue recognition Below are several independent situations that occurred during 2014 for Lark Corporation: Situation 1: Lark entered into a consignment arrangement with Sorel Corporation.Sorel will sell the goods and retain a commission. Situation 2: Lark agreed to provide consulting services to Dodo Company, a small company with a questionable credit rating.The term of the contract is 3 years. Situation 3: Lark sold equipment that includes a one-year warranty.The individual fair values of the equipment and warranty components are readily available. Instructions For each situation, explain how revenue should be recognized under the earnings approach.Be sure to include your reasoning.

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The Answer of Revenue recognition Below are several independent situations that occurred during 2014 for Lark Corporation: Situation 1: Lark entered into a consignment arrangement with Sorel Corporation.Sorel will sell the goods and retain a commission. Situation 2: Lark agreed to provide consulting services to Dodo Company, a small company with a questionable credit rating.The term of the contract is 3 years. Situation 3: Lark sold equipment that includes a one-year warranty.The individual fair values of the equipment and warranty components are readily available. Instructions For each situation, explain how revenue should be recognized under the earnings approach.Be sure to include your reasoning.

Revenue Recognition Below Are Several Independent Situations That Occurred During