ANSWERS TO QUESTIONS
A method should be selected that will best measure the portion of services expiring each period. Once a method is selected, it may be objectively applied by using a predetermined, objectively derived formula. ... $40,000 X 20% = $ 8,000 2009: $40,000 X 32% = 12,800 2010: $40,000 X 19.2% = 7,680 2011: $40,000 X 11.52% = 4,608 2012: $40,000 X 11 ... ................
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