INSTRUCTIONS: Please read carefully! Failure to follow these instructions will lead to lost points! To receive full credit, the following are required: Numerical answers are correct Journal entries are formatted correctly For each question, clearly identify the final answer. If I cannot determine which value is the final answer or if the writing is illegible, the question will not receive any points.

1. (7 pts) TV Sellers specializes in selling and installing upscale home theater systems. On March 1, 2021, TV Sellers sold a premium home theater package that includes a projector, set of surround speakers, and high quality leather seats, along with complete installation service, for $32,500. If sold separately, each of these goods or services would have cost $19,000 (projector), $16,000 (speakers), $21,500 (seats), and $6,000 (installation), respectively.
   1. (2 pts) What are the two criteria for identifying distinct performance obligations?

b. (1 pt) How many performance obligations are in this package?

__________

c. (2 pts) Briefly describe the process for allocating transaction price when there are multiple performance obligations.

d. (2 pts) How much of the transaction price would be allocated to the projector, the speakers, the leather seats, and the installation service, assuming that each of these four parts of the contract is a separate performance obligation?

	Transaction Price
Projector
Speakers
Leather seats
Installation service