On July 1 5 , 2 0 2 3 , Ortiz & Co . signed a contract
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On July Ortiz & Co signed a contract to provide EverFresh Bakery with an ingredientweighing system for a price of $ The system included finely tuned scales that fit into EverFresh's automated assembly line, Ortiz's proprietary software modified to allow the weighing system to function in EverFresh's automated system, and a oneyear contract to calibrate the equipment and software on an asneeded basis. Ortiz competes with other vendors who offer ongoing calibration contracts for Ortiz's systems. If Ortiz were to provide these goods or services separately, it would charge $ for the scales, $ for the software, and $ for the calibration contract. Ortiz delivered and installed the equipment and software on August and the calibration service commenced on that date. Assume that the scales, software, and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in for this contract?
Related Book For
Financial and Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
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