Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help I got this wrong Company W sold services with a stand-alone fair value of $7,000 and equipment with a stand-alone fair value of $25,000

image text in transcribed

Help I got this wrong

Company W sold services with a stand-alone fair value of $7,000 and equipment with a stand-alone fair value of $25,000 to Company X. Further, Company W provided payment terms such that no amounts are due for 366 days, at which time the full balance is due. The appropriate discount rate is 7%, which yields a contract price of $29,907. What is the amount of the price to allocate to the services portion? Answer: 23,364.84

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Integrated Audit Practice Case

Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens

5th Edition

0912503351, 9780912503356

More Books

Students also viewed these Accounting questions