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A hotel enters into a contract with a customer to provide 10 rooms for 10 nights for $200 per room per night. In addition to
A hotel enters into a contract with a customer to provide 10 rooms for 10 nights for $200 per room per night. In addition to the room price per night, the hotel collects a city occupancy tax of $7 per room per night. According to the hotels promotion, each customer that purchases in total more than 50 room nights is entitled to a credit of $3,000 on the entire purchase. What is the total transaction price of the contract?
A. $20,700
B. $17,700
C. $20,000
D. $17,000.
The standalone selling price of a performance obligation in a contract with customers may not be directly observable. Alternatives for estimating the standalone selling price include Estimation of the Price in the Seller's Market Residual Approach Yes Yes No No Yes No 0 0 Yes
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