Question
On July 15, 2021, Amazon.com Inc. agreed to provide Yale University with a precision cutting system for a price of $87,600. The contract included the
On July 15, 2021, Amazon.com Inc. agreed to provide Yale University with a precision cutting system for a price of $87,600. The contract included the following performance obligations:
| Performance obligations: | Stand-alone selling price: |
| The precision cutter that fits into Yale Universitys automated assembly line. | $58,000 |
| Amazon.com Inc.'s proprietary software modified to allow the cutting system to function in Yale Universitys automated system. | $10,000 |
| A one-year contract to calibrate the equipment and software on an as-needed basis. | $32,000 |
Amazon.com Inc. delivered and installed the equipment and software on August 1, 2021, and the calibration service commenced on that date. Assume that the cutter, software and calibration service are all separate performance obligations. How much revenue will Amazon.com Inc. recognize in 2021 for this contract?
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Harold Cecil Edey A Collection Of Unpublished Material From A 20th Century Accounting Reformer
Authors: Martin E. Persson
1st Edition
1789736706, 9781789736700
