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On January 1, 2018, PLDC enters into a wireless contract in which customer MBP is provided with handset and a voice and data plan for

On January 1, 2018, PLDC enters into a wireless contract in which customer MBP is

provided with handset and a voice and data plan for P 3,500 per month. PLDC identified

the handset and wireless plan as separate performance obligations.

The handset can be separately sold by PLDC for a price of 20,000 which provides

observable evidence of stand-alone selling price. PLDC offers a 12-month service plan

without a phone that includes the same level of services for a price of P 2,500 per month.

How much is the total transaction price to be allocated to the separate performance

obligation?

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