Skippers Landing sells boats and provides mooring facilities for its customers. Skippers Landing sells the boats for

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Skippers Landing sells boats and provides mooring facilities for its customers. Skippers Landing sells the boats for $60,000 each and provides mooring facilities for $10,000 per year. It concludes that the goods and services are distinct and accounts for them as separate performance obligations. Skippers Landing enters into a contract to sell a boat and one year of mooring services to a customer for $65,000.


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How should Skippers Landing allocate the transaction price of $65,000 to the performance obligations?

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Financial Accounting Theory And Analysis Text And Cases

ISBN: 9781119577775

13th Edition

Authors: Richard G Schroeder, Myrtle W Clark, Jack M Cathey

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