Calibration service are all separate performance obligations

Assignment Help Financial Accounting

Reference no: EM131266610

On July 15, 2016, Ortiz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $85,200. The system included finely tuned scales that fit into EverFresh’s automated assembly line, Ortiz’s proprietary software modified to allow the weighing sytem to function in EverFresh’s automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for Ortiz’s systems.) If Ortiz was to provide these goods and services separately, it would charge $56,000 for the scales, $10,000 for the software, and $34,000 for the calibration contract. Ortiz delivered and installed the equipment and software on August 1, 2016, and the calibration service commenced on that date. Assume that the scales, software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2016 for this contract?

Reference no: EM131266610

Questions Cloud

Create a perceptual map for the product : Create a perceptual map for the product you chose. - Write a short statement that describes the overall position of each product with an explanation of why you located it where you did on the perceptual map.

Create a seven-page critical analysis of a body of knowledge : The task is to create a seven-page critical analysis (excluding the title and reference pages)of a body of knowledge (BOK) attached. The analysis should use the BOK and approximately seven full-text peer reviewed journal articles from ProQuest, BE..

Ethical culture within the organization : 1. Explain exactly what it means to maintain an ethical culture within the organization. 2. Analyze the role that culture plays in global business ethics.

Why the economy might have vertical lm curve : Why the economy might have vertical (steep) LM curve? What would be the consequence if there is Government stimulus package? Use the Money market diagram and IS-LM to explain

Calibration service are all separate performance obligations : On July 15, 2016, Ortiz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $85,200. The system included finely tuned scales that fit into EverFresh’s automated assembly line and a one-year contract t..

Moon shots for management : In the assigned article, "Moon shots for management," Hamel (2009), other scholars and business leaders identify a list of twenty-five management priorities or a "roster of make-or-break challenges - management moon shots - that would focus the en..

Aggressive patients in a medical office : What personal communication methods would you use to deal with aggressive patients in a medical office? "communication with aggressive patients"

What about the spi and the csi : What is the actual cost (AC) for the project? What's the schedule variance (SV) for the project? What about the SPI and the CSI?

User Account

All Pages