On 1/1/X1, Tractor Co. sold a new combine to Jims U-Pick farm. The purchase agreement 8.4 establishes a base price of $100,000, plus a contractual interest rate of 5%, payable in 48 monthly installments of $2,302.93. Control of the combine transferred to Jim when Jim signed the contract and had the combine delivered

that same day. If Jim had obtained separate financing (say, a bank loan) for the purchase, his interest rate would have

been 6%.

What amount of revenue should Tractor Co. record at the date of sale? What guidance should Tractor Co. apply

to the subsequent measurement of its receivable?

Consider the measurement attribute used to record Tractor Co.s revenues. How does this approach achieve the

objective of this measurement attribute?