PROBLEM TWO Part A: Revenue Recognition =(15 minutes max) Loyola Company, a kitchen appliances manufacturer sells 10 washing machines to a dealer for $30,000 in one signed contract. Additionally, Loyola Company offered a $500 cash incentive (price reduction per machine purchased) to the dealer for all machines purchased within two weeks leading to the July 4th holiday. The sale includes three years of maintenance for each of the machines. The standalone selling price of the washing machines is $30,000 and the standalone selling price of the maintenance contract is $2,000. Loyola company purchased the machines at a combined total of $25,000. In answering the following questions, round each amount to the nearest whole dollar. Instructions 1. How many performance obligations are in this contract? 2. Allocate the transaction price to the performance obligations identified in \#1 assuming the machines were sold on July 1st (within the offer time)