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Sunland Inc. sells an irrigation system that cost $230,000 to McGraw Company for $372,000 on March 2,2017 . The sales price $329,000. The installation is
Sunland Inc. sells an irrigation system that cost $230,000 to McGraw Company for $372,000 on March 2,2017 . The sales price $329,000. The installation is considered a separate performance obligation and is expected to 3 months to complete. (a) Your answer is correct. Allocate Sunland's total selling price for the irrigation system and installation to the two performance obligations (delivery of the irrigation system and installation). (Round intermediate calculations to 6 decimal places, e.g. 1.246871 and final answers to 0 decimal places, e.g. 5,125.) Irrigation system $ Installation $ eTextbook and Media Solution Attempts: 3 of 3 used (b) Sunland delivered the irrigation system on March 14, 2017. The installation was completed on June 10, 2017. How much revenue should Sunland recognize in the first quarter of 2017 related to its sale to McGraw? How much revenue should Sunland recognize in the second quarter? (Round answers to 0 decimal places, e.g. 5,125.)
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