Night Day Co. (NDC) who specializing in high end kitchen and bath design. It recently entered into a contract for replacement of customer s kitchen countertops. The new countertops that the customer has ordered are top-of-the-line quality and their installation will require extensive customization. The Customers unique requests and specifications will further complicate installation. NDC sometimes sells countertops alone without installation, and it will install basic stock countertops purchased elsewhere. However, the highly integrated nature of the work it has agreed to perform for customers makes separate pricing impractical, and so NDC is charging a single contract price for the countertops and installation.

RequiredIdentify the number of performance obligations in the contract with customer for purposes of revenue recognition under FASB ASC 606:

If there is only one, what is it?

If there is more than one, what are they?

Explain using the new standards specific language and criteria.