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Identify the performance obligation

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Question - Dixon Management requires tenants to sign a three-year lease and charges $5,000 per month for one floor in its midtown high-rise. In addition to the monthly fee, payable at the beginning of each month, tenants pay a nonrefundable fee of $12,000 to secure the lease.

Required - Identify the performance obligation(s) and the timing of revenue recognition of each. Explain whether the revenue should be recognized over time or at a point in time.

Reference no: EM132916643

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