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AT&T enters into a contract to sell 16,000 units to Flanders Co. for $42 per unit, over the next three months. After 4,000 units had

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AT&T enters into a contract to sell 16,000 units to Flanders Co. for $42 per unit, over the next three months. After 4,000 units had been delivered, AT&T agrees to deliver 1,000 additional distinct units at a price of $40 per unit. At the time of the contract modification, this was the standalone selling price of the additional units. Which of the following is true? a. The original contract is not affected. b. Because the additional goods are distinct and have a standalone price, the contract modification represents a separate performance obligation. c. AT&T should recognize revenue based on a blended price, as the remaining units are sold. d. Only a and b are true. Concord Corp. enters into a contract with a customer to build an apartment building for $4,000,000. The customer provides a performance bonus of $300,000 to be paid if the building is ready for rental beginning August 1, 2021. Based on available workforce and materials, Concord believes they will complete the project by the August 1 deadline. Thus, the transaction price is determined to be. a. $4,240,000 b. $4,000,000 c. $3,700,000 d. $4,300,000

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