1.Green View Corporation (GVC) enters into a contract to sell four products (A, B, C and D) for a total transaction price of $500,000. Each product is properly classified as a separate performance obligation. GVC only sells products A and B on an individual basis, thus it must estimate the standalone selling prices for product C and D. Information on these four products follows:

Product

Standalone selling price

Forecasted cost

Market competitor price

A

$100,000

$ 80,000

$108,000

B

200,000

166,000

206,000

C

Not available

82,000

102,000

D

Not available

72,000

94,000

Total

$400,000

$510,000

a.How should GVC allocate the transaction price to the four products using the cost plus margin approach?

b.How should GVC allocate the transaction price to the four products using the adjusted market assessment approach?

c.How should GVC allocate the transaction price to the four products using the residual approach?