ii. Question 3 (12 marks, 24 minutes) Part (a) 5 marks In January, Hometown Appliances announces a sale on its kitchen appliances package including a refrigerator, a cooking range with an overhead microwave, and a dishwasher, with an extended warranty plan for five years, for a total package price of $4,999. As an additional incentive, customers buying the package will receive a free 55" Smart TV. The individual prices of the items included are as follows: Refrigerator Cooking range with overhead microwave Dish Washing machine 5-year extended warranty on above $1,999 1,799 899 599 The 55" Smart TV retails for $799, but costs Hometown Appliances $450. Required: Allocate the transaction price to the performance obligations in accordance with IFRS 15 (3 marks). Explain briefly when revenue should be recognized for the separate performance obligations (2 marks) I Part (b) 7 marks At the end of 2019, Sally Corporation owns a licence with a remaining life of 9 years and a carrying amount of $500,000. Sally expects undiscounted future cash flows from this licence to total $525,000. The licence's fair value is $415,000 and disposal costs are estimated to be 3,000. The licence's discounted cash flows (that is, value in use) are estimated to be $400,000. Sally prepares financial statements in accordance with ASPE. Required: 1 18 19 20 21 22 23 24 25 26 27 28