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Novelty Nursery promises to sell 200 aspen trees to the City of Denver for $400,000. The trees are to be delivered to Denver over an
Novelty Nursery promises to sell 200 aspen trees to the City of Denver for $400,000. The trees are to be delivered to Denver over an eight-month period. After Novelty delivers 40 trees, Denver and Novelty agree to modify the contract by adding an additional 50 trees to the order, bringing the total number of trees Novelty will deliver to Denver to 250. The total price for the additional 50 trees is $80,000 and does not reflect the standalone selling price for these trees. How much sales revenue will Novelty recognize for the 40 trees it delivered before the contract was modified and for the 40 trees it delivered immediately after the contract was modified? $80,000 before and 76,800 after. $80,000 before and $76,190 after $80,000 before and $80,000 after. O Novelty will not recognize any revenue until all the trees are delivered
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