University enters into a contract with a food service provider. The university grants the food service provider the exclusive right to operate all dining facilities and charge students for these services. In exchange for this right, the food service provider agrees to update the food service facilities by installing new equipment. Ownership of these capital improvements reverts to the university when completed. The university will also receive an agreed-upon percentage of food sales to students, to be remitted by the food service company to the university on a monthly basis. The agreement term is 10 years. Match the following steps in this scenario with the revenue recognition steps.

Question 6 10 pts Dedman University enters into a contract with a food service provider. The university grants the food service provider the exclusive right to operate all dining facilities and charge students for these services. In exchange for this right, the food service provider agrees to update the food service facilities by installing new equipment. Ownership of these capital improvements reverts to the university when completed. The university will also receive an agreed-upon percentage of food sales to students, to be remitted by the food service company to the university on a monthly basis. The agreement term is 10 years. Match the following steps in this scenario with the revenue recognition steps. [Choose] The university grants the exclusive right to provide all food services on campus to the food service company. [Choose] The capital improvements represent noncash consideration, as the university obtains control of the capital items. As a result, the university measures the The university grants the [Choose ] exclusive right to provide all Identify the contract(s) with the customer food services on campus to th Allocate the transaction price food service company. Recognize revenue Determine the transaction price Identify the performance obligations The capital improvements [Choose] represent noncash consideration, as the university obtains control of the capital items. As a result, the university measures the estimated fair value of the capital improvements at contract inception. Variable consideration is the percentage of monthly sales to be remitted to the university. This amount will depend on monthly sales to students. [Choose] The university is transferring control of the exclusive right over time and therefore will satisfy the performance [Choose] The university is transferring control of the exclusive right over time and therefore will satisfy the performance obligation over the term of the contract. The food service provider simultaneously receives and consumes the benefits provided by the university's performance. [Choose] The university grants the food service company exclusive access to provide services to its students in exchange for consideration in the form of capital improvements and a specified percentage of monthly sales. [Choose] the entire transaction price relates to the exclusive right to provide food services