Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one

$-$

year warranty that covers any product defects. When

customers purchase a Tornado, they also have the option to purchase an extended three

$-$

year warranty that covers any breakage or

maintenance. The extended warranty sells for the same amount regardless of whether it is purchased at the same time as the Tornado

or at some other time.

How many performance obligations exist in the implied contract for the purchase of a vacuum cleaner?

Number of performance obligations in the contract

Identify the best description of each performance obligation from the following list.

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct

answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark

will be automatically graded as incorrect.

Delivery of vacuum cleaner

The one

$-$

year quality

$-$

assurance warranty

The option to purchase the three

$-$

year extended warranty

Purchase of vacuum cleaner