following arrangement with TI's Maritime College: XXII - Multiple Performance Obligations AA Maritime Industries , Inc. is a manufacturer of bridge simulator used in the maritime and The company's products range from varied range of machineries and equipment. The selling price of their units varies depending on the unit involved with a range of P6,000,000 installation does not involve any modification as to the original specifications. AA, Inc. has the P60,000,000 and are quoted inclusive of installation and training, if there is a need. The installation and TT agreed on such arrangements. The price of the installation services TT purchases bridge simulator from AA at a price of P40,740,000 and prefer AA to do the estimated to have a fair value of P840,000. The fair value of the training sessions is estimated at P420,000. bridge simulator. TT is obligated to pay AA, Inc. the P40,740,000 upon the delivery and installation of the November 1, 20x7. Training related to the bridge simulator starts once the instalation AA delivers the bridge simulator on September 1, 20x7, and completes the installation on completed and lasts for 4 month. The bridge simulator has a life of has a useful le all Required: . years. 1. How much is the total fair value of the bridge simulator? 2. Prepare the journal entries necessary on November 1, 20x7. 3. Prepare the journal entries necessary on December 31, 20x7