Company sold a used car for $15,000. The terms of sale include monthly oil changes for one year from the date of purchase. Acme has (select the single best choice):

Group of answer choices

A. Company has one performance obligation and all $15,000 of revenue is recorded on the date the order is received from the customer.

B. Company has one performance obligation and all $15,000 of revenue is recorded when the customer takes possession of the car.

C. Company has two performance obligations. Acme separates the value of the monthly oil changes from the $15,000, and defers this portion of the $15,000 to be recognized as revenue during the first year as the oil changes occur. The remainder of the $15,000 purchase price is recorded as sales revenue on the date the customer takes possession of the car.

D. Company has two performance obligations. Acme separates the value of the monthly oil changes from the $15,000, and defers this portion of the $15,000 to be recognized as revenue during the first year as the oil changes occur. The remainder of the $15,000 purchase price is divided by 12 months and recorded as sales revenue each month during the first year.