(LO3) (Allocate Transaction Price) Refer to the revenue arrangement in E18-13. Instructions Repeat requirements (a) and (b)...

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(LO3) (Allocate Transaction Price) Refer to the revenue arrangement in E18-13.

Instructions Repeat requirements

(a) and

(b) assuming Crankshaft does not have market data with which to determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $36,000;

Crankshaft prices these services with a 25% margin relative to cost.

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Intermediate Accounting

ISBN: 9781119231530

16th Edition

Authors: Donald E. Kieso

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Question Posted: Sep 20, 2024 12:02 AM

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(LO3) (Allocate Transaction Price) Refer to the revenue arrangement in E18-13. Instructions Repeat requirements (a) and (b)...

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Intermediate Accounting

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