Analyze the five steps of model of revenue recognition

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On January 1, 2021 machinery corp. enters into a contract with a customer for the sale of a machine and related one-year maintenance services for a total contract price of 2,000,000 machinery corp. regularly sells these items separately. if they were to be purchased separately.

their stand-alone selling prices are as follows:

  1. 1,800,000 for the machine and
  2. 600,000 for the one-year maintenance services

Machinery corp transfers the machine, and collects the total contract price, on February 1, 2020. the maintenance services start on that date.

required

Problem 1: Analyze the five steps of model of revenue recognition

Reference no: EM132850043

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