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Pistons Inc. develops, sells and installs customer-relationship software. In 2021, Pistons Inc. signed a contract to Spurs Inc. to sell and install its product.
Pistons Inc. develops, sells and installs customer-relationship software. In 2021, Pistons Inc. signed a contract to Spurs Inc. to sell and install its product. The total transaction price is $3,300. As the software requires a highly sophisticated techniques to use and requires regular updates, Pistons Inc. promised to provide consulting services for three years, over the estimated useful life of the asset. The stand-alone fair values of the software, installation and consulting services are estimated to be $2,475, $660 and $495, respectively. Upon delivery of the product on May 1, Spurs Inc. paid $2,640. The remainder was paid on September 1 when Pistons Inc. completed the installation. What is the amount of sales revenue that should be recorded in 2021? Pistons Inc. follows IFRS with year end on December 31. Pistons Inc. treats the sale as a single performance obligation in the contract. O a. $733 O b. $2,850 O c. $2,950 O d. $367 e. $3,300 Clear my choice
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