2. Too Nice Company (TNC) includes with the sale of its jumping bean machine, a 5-year warranty that covers all repairs and maintenance. The selling price for the jumping bean machine and the related warranty is $2,000. A competitor sells a similar machine without any warranty for $1,850. TNC does not sell the warranty separately nor is it aware of any company that does. TNC estimates it will cost $240 to perform warranty work on each jumping bean machine over the 5-year warranty period. TNCs average markup on sales is 40%. In 2020, TNC sells 1,200 jumping bean machines, and incurs $42,000 total warranty cost on the 1,200 machines.a.How many performance obligations are involved in the jumping bean machine sales in 2020? Justify your answer.b.What is the transaction price?c.Determine the transaction price allocated to each performance obligations.d.How much revenue will be recognized from the above transaction in 2020?