Question
Dexter purchases equipment from Ray Company for a normal market price of $5,000,000. As an incentive, Ray's salesman throws in free installation as part of
Dexter purchases equipment from Ray Company for a normal market price of $5,000,000. As an incentive, Ray's salesman throws in free installation as part of the deal. The price of the installation service is estimated to have a fair value of $600,000. Assuming the transaction to be multiple-deliverable arrangement, compute the amount to be allocated to installation. Round your percentage calculations to AT LEAST 4 decimal places.
| $535,714 | ||
| $600,000 | ||
| $670,200 | ||
| $614,570 |
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Data Analytics For Accounting
Authors: Vernon Richardson
3rd Edition
1264444907, 9781264444908
