9Getting to workPat leaned back and looked at the notes all over the desk. It had been a busy couple of days, butfinally Pat understood the process for these new full-service construction contracts and could getto work figuring out how the company should recognize revenue. That was Vargas big issue,after all. How much revenue could they recognize on this first project this year, and how willthey break down revenue recognition on future full-service contracts.Pat took another look at the revenue recognition rules from ASC 606 that had been provided bytheir auditor at a special training, then back at the notes on the desk.I can do this,Pat thought.Ijust have to remember to look at it step-by-step and document each decision.Case QuestionsAnswerallof the following questions:Based on your understanding of PCCs processes and the revenue recognition standardsin ASC 606, how many distinct obligations are includedin the companys new full-service contract? Your answer should include a breakdown of which goods or servicesare included in each distinct obligation bundle.How much of the transaction price (i.e., customer price) should be allocated to each ofthe distinct obligations you identified in question 1?How much revenue can PCC recognize in the current year on their first full-servicecontract?