User Account

All Pages

Allocate the transaction price to performance obligations

Assignment Help Accounting Basics
Reference no: EM132901926

Problem - Allocating the Transaction Price. HeavyEQ produces large conveyor belt systems for heavy manufacturing. HeavyEQ signs a $2 million fixed-price contract under which it makes three promises:

Install a conveyor belt system: fair value $1.6 million

Service the system over a five-year period: fair value $0.6 million

Provide a warranty assuring that the conveyer belt meets the contract specification at the time of sale: fair value $0.2 million

REQUIRED -

a. Allocate the transaction price to the performance obligations.

b. Reallocate the transaction price under the notion that HeavyEQ has no reasonable basis for determining the fair value of the servicing because the conveyor system is of such a unique nature that the servicing activities are highly variable and uncertain.

Reference no: EM132901926

Questions Cloud

Developmentally appropriate experience : Share your memory of the educator or developmentally appropriate experience. Describe this memory in as much detail as possible.
About the ways culture impacts children behavior : Based on what you know about the ways culture impacts children's behavior, What do you think might be happening with the child in the scenario you chose?
Topic of Communication Systems and Strategies : Write on the topic of Communication Systems and Strategies applied by successful companies. In this Group Project
Evaluate your temperament : Evaluate your temperament. Describe your temperament and analyze how it may have influenced your life.
Allocate the transaction price to performance obligations : Service the system over a five-year period: fair value $0.6 million. Allocate the transaction price to the performance obligations
What is the transaction price : The contract calls for an upfront payment of $25,000 a second payment of $10,000 in March 2017, What is the transaction price
Predicting the sales based on only sales calls : Based on the data collected by the sales manager in the Copier case, it appears that she would have some difficulty predicting the sales based on only sales cal
Chappuis and stiggins : How do you involve your students in their assessments? What practices do you or your colleagues use to involve them?
How do blue ocean strategies benefit society : What will be the effect of the continued expansion of foundations and governments funding opensource texts?How does this change benefit or hurt society

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd