Shaw Beaver Transmission Company enters into a contract with a major U.S. auto manufacturer to design and produce four-speed transmissions for small SUVs. Under the terms of the contract. Shaw Beaver will deliver the transmission immediately but the auto manufacturers will defer payment for three years, the end of the life of the base warranty. The contract price is $3,700,000 and the interest rate incurred on similar financing agreements in the industry is 3%. Read the requirements ne viwthe Present Vale Annuity Due table) of as Annuty Due table) Requirement a. Is there a significant Snancing component in this contract?" A significant Einancing component exists because the contract price is in excess of $1,000,000, creating a need to record interest OB A significant inancing component does not exist because a vald contract is signed and the interest rate is based on the industry rate at 3% C A significant financing component exists because the time period from payment to delivery is three years and the inferest rate is 3% D A significant financing component does not exist because the time pariod from payment to delivery is theee years and the interest rate is 3% OA Requirement b. If there is a significant financing component, determine the amount of sales revenue and interast revenue to be recognized by Shaw Beaver (Use the present value and e vale tables a fnancial caklator or spreadsheet for your calculations I using present and future value tables une factor amounts rounded to five decimal places, X.XX000 Rnd your al anw to the nearest whole dor as sales revenue Shaw Beaver wll recond S Tand wil recogniee interest over the thee-year period revenue of $ Requirement b. If there is a significant financing component, determine the amount of sales revenue and interest revenue to be recognized by Shaw Beaver. (Use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations If using present and future value tables, use factor amounts rounded to five decimal places, XXXXXX. Round your final answer to the nearest whole dollar) and will recognize interest as sales Shaw Beaver will record $ revenue over the three-year period. revenue of S