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Please help me to answer asap, urgrnt needed, thankyou sosomuch Question 1 On 1 April 2020, Tux Co sold a machine and four years maintenance
Please help me to answer asap, urgrnt needed, thankyou sosomuch
Question 1 On 1 April 2020, Tux Co sold a machine and four years maintenance service as a package to a customer. The total amount payable by the customer for this arrangement was agreed to be: - $350,000, if the customer paid by 30 April 2020. - $360,000, if the customer paid by 31 May 2020. - $370,000, if the customer paid by 30 June 2020. The company foresees it is highly likely for the customer to pay for the products within two months from the date of sale. If Tux Co were to sell the machine and services separately, it would be $200,000 for the machine, and $50,000 per year for the maintenance service. PERTSO The current business year end is 31 December 2020. Required: (a) Identify and state the performance obligation(s). (3 marks) (b) Determine and explain the transaction price for this contract. (3 marks) (c) Calculate the revenue from the contract to be recognised in the statement of profit or loss for the year ended 31 December 2020. (7 marks (d) Calculate and explain the accounting treatment of the amount in relation to the contract with customer to be recognised in the statement of financial position as at 31 December 2020. (7 marks) (Total: 20 marks) ALSStep by Step Solution
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