Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.

Instructions

Shaw now prepares a mid-year income statement for the first six months of 2020, ending on June 30, 2020 (recall that instillation was completed June 18, 2020). How much revenue should Shaw have recognized at this point related to its sale to Ricard?

(From the) Mid-Year Income Statement (i.e., for the six months ended June 30, 2020)

Sales Revenue
Service Revenue