Relative standalone selling price basis

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Sanchez Co. enters into a contract to sell Product A and Product B on January 2, 2014, for an upfront cash payment of $174,000. Product A will be delivered in 2 years (January 2, 2016) and Product B will be delivered in 5 years (January 2, 2019). Sanchez Co. allocates the $174,000 to Products A and B on a relative standalone selling price basis as follows.

Reference no: EM13864978

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