1 Revenue Recognition 3 D E 1 Revenue Recognition 2 Allocation of Transaction Price 3 Martin Software Developers, Inc. recently signed a contract to create a registration, grade report, and transcript system for MacFarlane State University. Each part of the system will be delivered separately and must be fully functional upon installation. The contract price and the standalone 4 sales value of each performance obligation are reported below. 7 B Description Registration System Grade Reporting System Transcript System Total Standalone Selling Prices $500,000 800,000 700,000 $2,000,000 10 Contract Price $1,600,000 13 14 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the instructions tab you will be marked 15 wront 16 17 Requirement 18 How should Martin allocate the transaction price across the performance obligations? 19 A13 f B E G H D F 1 How should Martin allocate the transaction price across the performance obligations? (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste 2 from the Instructions tab you will be marked wrong.) 3 Relative Percent Revenue Recognized 4 Description 5 Registration System (Delivered) 6 Grade Reporting System 7 Transcript System 8 Total 9 10 11 12 13 14 15 16 17 18 19 20 21 22