Question
On September 1, 2019, you entered into a 36-month Unlimited & More phone plan with T-Mobile, which is a goods and services tax-registered company with
On September 1, 2019, you entered into a 36-month Unlimited & More phone plan with T-Mobile, which is a goods and services tax-registered company with a December 31 financial year-end. The terms of the plan are as follows: (1) Monthly fixed fee: $41.60 (to be billed monthly); (2) Free iPad at the inception of the plan; (3) T-Mobile sells the same iPad for $156 and the same monthly plans without iPad for $38.48 per month.; (4) All amounts stated are inclusive of 4% tax. Under ASC 606, how much T-Mobile should recognize revenue for the September 1, 2019 contract at the end of fiscal-year end in 2019? Round all amounts, including a percentage to the nearest tenths.
- A. $253.3
- B. $270.0
- C. $316.4
- D. $0
- E. $156.0
- F. $280.8
- G. $322.4
- H. $257.9
- I. $290.0
- J. $256.4
- K. $289.2
- L. $150.0
- M. $261
- N. $450.0
- O. $280.0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
