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What are company as performance obligations in contract

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Question: Company A enters into a contract to manufacture a drill press for $100,000. The contract includes installation services at a cost of $2,000 and a two-year service agreement at a cost of $12,000. The drill press cannot be operated without installation. Company A separately sells the equipment, installation services and service agreements. Other vendors could provide the fairly straightforward installation and service. What are Company A's performance obligations in this contract? Explain your logic in making your determination.

Reference no: EM132757182

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