Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC signed a sales contract to provide West Bakery with an ingredient-weighing system for a price of $90,000 on July 15, 2021. The ingredient-weighing system

ABC signed a sales contract to provide West Bakery with an ingredient-weighing system for a price of $90,000 on July 15, 2021. The ingredient-weighing system included finely tuned scales that fit into Wests automated assembly line, ABCs proprietary software modified to allow the weighing system to function in Wests automated system, and a one-year service contract to calibrate the equipment and software on an as-needed basis. If ABC were to provide these goods or services separately, she would charge $60,000 for the scales, $10,000 for the software, and $30,000 for the calibration contract. ABC delivered and installed the equipment and software on November 1, 2021, and the calibration service commenced on that date. Assume that the scales, software, and calibration service are three separate performance obligations. How much revenue will ABC recognize in 2021 for this contract? _________ (Please round your answer to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Definitive Guide To Blockchain For Accounting And Business

Authors: Saurav K. Dutta

1st Edition

1789738687, 9781789738681

More Books

Students also viewed these Accounting questions

Question

What is the major defect of the cash basis of accounting?

Answered: 1 week ago