7. Satellite TV Company sells receivers and satellite dishes and provides satellite television programming to customers. Satellite enters into a transaction with Customer M (M) where M purchases a satellite dish and receiver and signs a contract to receive one year of satellite programming years (expected customer relationship period is three years). M installs the satellite dish and receiver itself. Amounts to be paid by M include a $50 upfront, nonrefundable fee and $18 per month for the duration of the contract (the $18 per month charges are legally enforceable). The costs incurred by Satellite include: 1) $150 related to its purchase of the receiver and satellite dish from a third party. 2) $100 commission paid to an internal employee dedicated solely to selling activities. a. Are any of the costs incurred by Satellite deferrable and why? (5pts) If so, over what period? (3pts) b. Perform the Realizability Test. (7pts) 8. For the case below, (a) determine whether Machine 1, Machine 2, and training should be accounted for as separate units or a single unit of accounting, and explain why. (5pts) (b) Allocate the total fee of $400,000 among the three deliverables. (5pts) Company W manufactures equipment that is used to make widgets. The widget- making process involves two pieces of equipment, both of which Company W manufactures. In an arrangement with a new customer, Company W sells both pieces of equipment, along with 10 days of training for the customer's employees, for a total fee of $400,000. Title to each machine transfers upon shipment. Company W does not grant general or specific refund rights to its customers. Company W also sells each piece of equipment separately. In addition, competitors manufacture machines that perform the same functions as Machine 1 and 2, and machines from different manufacturers are interchangeable. Company W sells Machine 1 separately for $200,000, and Machine 2 separately for $250,000. No amount of the arrangement consideration is contingent upon performance of undelivered components. Company W sells training services separately to customers who already have equipment installed and want additional training for new employees. Company W charges $5,000 per day for training. However, not all customers purchase training, as Company W includes operating manuals with its equipment. Company W delivers Machine 1 first, then Machine 2, then the training, using the installed machines to demonstrate the machines' functionality. Payment terms are $100,000 upon delivery of Machine 1, $200,000 upon delivery of Machine 2, and $100,000 upon providing the training