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When answering questions one and two, suppose that on July 1, 2019, a customer signed a contract with Tesla in which Tesla agreed to install a solar roof at the customer's home. The solar roof comes with a monitoring service. The agreed upon price for the roof and the service was $36,000; and, at the time she signed the contract the customer paid Tesla in full. Tesla finished installing the roof on August 31, 2019. The estimated standalone price of the roof and the monitoring service is $34,000 and $3,777.78, respectively. The roof is covered by a three-year warranty and the warranty period started on September 1, 2019.
Problem 1: Regarding the scenario described above, how much revenue for the part of the contract relating to the solar roof should Tesla recognize during the fiscal year that ended on December 31, 2019?
Problem 2: Regarding the scenario described above, how much revenue for the part of the contract relating to the monitoring system should Tesla recognize during the fiscal year that ended on December 31, 2019?
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