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A company sells specialized machinery. They also provide installation services if customers require it and provide maintenance contracts to service the machine. Customers have the
A company sells specialized machinery. They also provide installation services if customers require it and provide maintenance contracts to service the machine. Customers have the option to purchase one, two or all three product/service offerings. The stand-alone selling prices are as follows: Machine $750,000 Installation 80,000 Maintenance contract - 5 years 150,000 If a customer chooses to purchase all three, the selling price is $900,000. Customers sign a contract with the entity when the payment is made. The machine and installation were completed by December 31, 2021 and the maintenance contract starts on January 1, 2022. How much revenue can be recorded by the entity on December 31, 2021? a) $762,245 b) $830,000 c) $688,776 d) $750,000
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