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Question 10 (5 points) Saved On January 1, Wilma LLC enters into a four-year contract with Wilbur LLC to build a missile with customized
Question 10 (5 points) Saved On January 1, Wilma LLC enters into a four-year contract with Wilbur LLC to build a missile with customized software. At that time, Wilma received $25,000. The customized software is integrated with the missile in order to guide it when launched. The software and the missile are interdependent and interrelated. The total transaction price is $100,000. Based on standalone values, Wilma estimates that the missile has a value of $95,000 and the software has a value of $10,000. The missile was delivered on October 1, and the software functionality will be supported over the four-year term of the contract. Determine whether this is a single or multiple performance obligation(s) and determine how much revenue should be recognized as of December 31. a) Single; $6,250 b) Multiple; $95,000 c) Single; $6,563 d) Multiple; $95,625 t
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