ABC Co. enters into a contract with a customer to sell a piece of equipment and provide installation services for $125,000. The equipment is operational without any customization or modification. The installation required is not complex and is capable of being performed by several other vendors. As part of the contract, ABC gives the customer a discount voucher of 30% for a future purchase of equipment and installation services in the next year. ABC does not offer discounts to other customers. What are the performance obligations of this contract?

Select one:

a.The equipment and installation services are a single performance obligation and the discount voucher is a separate performance obligation, because it is a material right.

b.The equipment and installation services are a single performance obligation.

c.The equipment and the installation services are the only two separate performance obligations.

d.None of the these

e.The equipment, installation services and the discount voucher are each a separate performance obligation