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Office, Inc. sells office furniture. In 2021, it sold 200 desks for $500 each. For each desk sold, the company distributed a 50% discount coupon
Office, Inc. sells office furniture. In 2021, it sold 200 desks for $500 each.
For each desk sold, the company distributed a 50% discount coupon for purchase of an office chair within one month. Managers expects that 20% of the coupons will be utilized. The chairs purchased with the coupons are priced at $150.
What is the stand-alone price for the coupon when allocating the $500 transaction price to performance obligations?
A) $0
B) $12
C) $15
D) $75
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