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Carla Vista Company follows IFRS and sells consumer-relationship software to Tamarisk Inc. to be used for three years. In addition to providing the software, Carla Vista promises to provide consulting services over the life of the contract to maintain operability within Hedges' computer system. The total transaction price is $193,500. Based on stand-alone values, Carla Vista estimates the consulting services have a value of $71,100 and the software has a value of $122,400. Upon installation of the software on July 1, 2020, Tamarisk pays $102,600; the contract balance is due on December 31, 2020.
Problem 1: Identify the performance obligations and the revenue in 2020, assuming the performance obligations are interdependent.
Problem 2: Identify the revenue in 2020, assuming the performance obligations are not interdependent.
When a corporation purchases its own stock and uses the cost method, a debit entry is made to which account(s)? Common Stock, but not Paid-in Capital
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