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C. Green View Corporation (GVC) enters into a contract to sell four products (A, B, C and D) for a total transaction price of $500,000.
C. Green View Corporation (GVC) enters into a contract to sell four products (A, B, C and D) for a total transaction price of $500,000. Each product is properly classified as a separate performance obligation. GVC only sells products A and B on an individual basis, thus it must estimate the standalone selling prices for product C and D. Information on these four products follows: Product Standalone selling price Forecasted cost Market competitor price A $100,000 $ 80,000 $108,000 B 200,000 166,000 206,000 C Not available 82,000 102,000 D Not available 72,000 94,000 Total $400,000 $510,000 a. How should GVC allocate the transaction price to the four products using the cost plus margin approach? b. How should GVC allocate the transaction price to the four products using the adjusted market assessment approach? c. How should GVC allocate the transaction price to the four products using the residual approach
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