Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The answer is C but how did they get C? What functions do I need? on July 15, 2016, ortiz & Co. signed a contract

image text in transcribed The answer is C but how did they get C? What functions do I need?
on July 15, 2016, ortiz & Co. signed a contract to provide Ever Bakery with an system for a price of $90,000 The system included finely tuned scales that fit into EverFresh's automated assembly line Ortiz' s proprietary software modified to allow the weighing system to function in EverFresh's automated system and a one-year contract to calibrate the equipment and software on a as-needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for ortiz's systems.) Ortiz to provide these goods and services separately, it would charge $6 for the scales, $1 0 for the software, and $30,000 for the calibration contract. Ortiz delivered and installed the equipment and software on August 1 2016 and the calibration service commenced on that date Assume that the scales software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2016 for this contract? Ca k 65 Goro go into a $0 Soft l o b $63,000 74, 250 Cali 3o 30%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Level Audit Q And A 2014

Authors: ACA Simplified

1st Edition

1500852538, 978-1500852535

More Books

Students also viewed these Accounting questions