How much revenue would be recognized by Cullumber

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Question - Cullumber Company sells goods that cost $335,000 to Bramble Company for $435,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $44,500. The fair value of the goods is $400,500. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Bramble Company pays Cullumber $275,000 upon delivery of the goods and the balance at the completion of the installation.

Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Cullumber. Assume IFRS is followed.

Reference no: EM132832562

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