Problem 3 (12 points) Delta Spirit, Inc. entered into a contract to sell equipment to Ash and Fire, LLC on October 1. 2020. Along with the equipment, Delta Spirit will provide one-year maintenance services on an as needed basis, beginning once the equipment is installed. Delta Spirit provides similar services to other customers that purchased equipment sold by other vendors for $20,000. Delta Spirit will also provide installation services at no additional cost, a service that Delta Spirit typically charges $10,000. The equipment normally sells for $170,000 on its own. For the package deal, Ashes & Fire agrees to pay a total of $180,000. The equipment was delivered and installed on November 1, 2020. Ash and Fire paid the entire invoice in cash on the date of delivery and installation. a) How much revenue should Delta Spirit recognize relating to this contract in its 2020 Income Statement (round to the nearest dollar)? SHOW YOUR WORK. b) Prepare the Journal Entry for Delta Spirit to record the sale. Assume the equipment cost Delta Spirit $100,000 to manufacture. Date Account Debit Credit