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Should the revenue be recognized over a period of time

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Question - Assume Chicago Towers is remodeling an empty building and begins to sell individual condominiums during the construction. The layout of each condominium in the building is identical and cannot be changed by the buyer.   The Towers entered into a contract with Edwards for the sale of a specific condominium which will be completed 4 months after the signing of the contract. Edwards pays a deposit that is refundable only if the Towers fails to deliver the completed condominium in accordance with the contract. The condominium is completed as scheduled and Edwards pays for the apartment at closing. Should the revenue be recognized over a period of time or a point in time? Explain your answer (i.e. support your answer with the rules from ASC 606).

Reference no: EM132938224

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