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Apply the requirements for a contract under ASC 606

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Reference no: EM132940138

Question - On May 1, 2020, Richardson Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $900 in advance on May 15, 2021. Kickapoo pays Richardson on May 15, 2021, and Richardson delivers the mower (with cost of $575) on May June 3, 2021.

a. Apply the 5 requirements for a contract under ASC 606 (i.e. step 1).

b. Does this satisfy the requirements for a contract under ASC 606 (yes or no)?

Reference no: EM132940138

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