Current Attempt Wildhorse Co. enters into a contract to sell Product A and Product B on January 2, 2023, for an upfront cash payment of $160,000. Product A will be delivered in two years (January 2, 2025) and Product B will be delivered in five years (January 2, 2028). Wildhorse allocates the $160,000 to Products A and B on a relative stand-alone selling price basis as follows. Stand-Alone Selling Prices Percentage Allocated Allocated Amounts Product A $34,000 20% $32,000 Product B 136,000 80% 128,000 $170,000 $160,000 Wildhorse uses an interest rate of 5%, which is its incremental borrowing rate. 13