Reference no: EM132896277

Question - Satellite TV Company sell receivers and satellite dishes and provides satellite television programming to customers. Satellite enters a transaction with Customer (M) where M purchases a satellite dish and receiver and signs a contract to receive one year of satellite programming years (expected customer relationship period is three years). installs the satellite dish and receiver itself. Amounts to be paid by M include a $50 upfront, nonrefundable fee and $20 per month for the duration of the contract (the $20 per month charges are legally enforceable). The costs incurred by Satellite include: 1) $150 related to its purchase of the receiver and satellite dish from a third party 2) $100 commission paid to an internal employee dedicated solely to selling activities. Are any of the costs incurred by Satellite deferrable and why?