Assume the same facts as in E 5-16, but that Richardson Systems reports under IFRS. How would your answers change?
In E 5-16, Richardson Systems sells integrated bottling manufacturing systems that involve a conveyer, a labeler, a filler, and a capper. All of this equipment is sold separately by other vendors, and the fair values of the separate equipment are as follows:
Conveyer ..... $ 20,000
Labeler ....... 10,000
Filler ....... 15,000
Capper ....... 5,000
Total ...... $ 50,000
Richardson sells the integrated system for $45,000. Each of the components is shipped separately to the customer for the customer to install.