Bramble Inc. sells an irrigation system that cost $$238,000$ to McGraw Company for $$303,000$ on March $2,2017.$ The sales price

includes an installation fee. The standalone price of the installation fee is $$71,000.$ The standalone price of the irrigation system is

$$260,000.$ The installation is considered a separate performance obligation and is expected to take $3$ months to complete.

$($a$)$

Correct Answer

Your answer is correct.

Allocate Bramble's total selling price for the irrigation system and installation to the two performance obligations $($delivery of the

irrigation system and installation$).($Round intermediate calculations to $6$ decimal places, e$.$g$.1\mathrm{.}246871$ and final answers to $0$ decimal

places, e$.$g$.5,125.)$

Irrigation system $

Installation $

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Solution

Attempts: $3$ of $3$ used

$($b$)$

Bramble delivered the irrigation system on March $14,2017.$ The installation was completed on June $10,2017.$ How much revenue

should Bramble recognize in the first quarter of $2017$ related to its sale to McGraw? How much revenue should Bramble

recognize in the second quarter? $($Round answers to $0$ decimal places, e$.$g$.5,125.)$

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