Ch analysis of price and cost for the contracts: Contract price cost of related goods Gross profit (loss) Contract A $125,000 70,000 $ 55,000 Contract B $80,000 55,000 $25,000 Hjalmarsson, the customer, may cancel both contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B. Required: 1. Should the two contracts be combined for purposes of applying the five-step revenue recognition model? 2. What amount of revenue should Panarin associate with each of the contracts? 3. When should revenue be recognized on each of the contracts? 1. Should the two contracts be combined? 2. Amount of revenue associated with: Goods from Contract A Goods from Contract B 3. Revenue should be recognized Ch analysis of price and cost for the contracts: Contract price cost of related goods Gross profit (loss) Contract A $125,000 70,000 $ 55,000 Contract B $80,000 55,000 $25,000 Hjalmarsson, the customer, may cancel both contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B. Required: 1. Should the two contracts be combined for purposes of applying the five-step revenue recognition model? 2. What amount of revenue should Panarin associate with each of the contracts? 3. When should revenue be recognized on each of the contracts? 1. Should the two contracts be combined? 2. Amount of revenue associated with: Goods from Contract A Goods from Contract B 3. Revenue should be recognized