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TreeHold Corp. designs and builds custom harvesting equipment for logging companies across Canada. The company, which is publicly traded, has a May 31 year end. On February 18, 2020, TreeHold signed a contract with Coastal Harvesting Ltd. to design and build 25 custom harvesters that can harvest wood at the steep grades found along much of the Pacific coast timber stands included in Coastal's harvesting leases.
The following events took place in 2020 in relation to the contract:
Problem 1: Determine when and how much revenue TreeHold would be able to recognize for the year ended May 31, 2020.
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