Holden Inc. sells software and a six-month technical support contract to a customer for a total...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Holden Inc. sells software and a six-month technical support contract to a customer for a total of $180,000. Holden does not sell the same software or tech support separately, however its closest competitor prices the same software on a stand-alone basis for $115,000. How many performance obligations does Holden have and how much revenue should it defer and recognize ratably over 6 months? Holden Inc. sells software and a six-month technical support contract to a customer for a total of $180,000. Holden does not sell the same software or tech support separately, however its closest competitor prices the same software on a stand-alone basis for $115,000. How many performance obligations does Holden have and how much revenue should it defer and recognize ratably over 6 months?
Expert Answer:
Answer rating: 100% (QA)
To determine the number of performance obligations and how much revenue should be deferred and recognized we need to consider the guidance provided by ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these finance questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It...
-
On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It...
-
In the United States, a principal responsibility for preserving endangered species (e.g., a pair of endangered birds that chooses to nest on private land) and the costs of exercising that...
-
The comparative balance sheets for Howell Company show these changes in noncash current asset accounts: accounts receivable decrease $80,000, prepaid expenses increase $28,000, and inventories...
-
At the beginning of the year, Ray Fisher decided to take $50,000 in savings out of the bank and invest it in a portfolio of stocks and bonds; $20,000 was placed into common stocks and $30,000 into...
-
For a flight on a small plane, the pilot asks passengers what they weigh. Identify at least one likely source of random errors and also identify at least one likely source of systematic errors.
-
The marketing manager of Durant Corporation has determined that a market exists for a telephone with a sales price of $30 per unit. The production manager estimates the annual fixed costs of...
-
For any tax year, an S corporation can elect its distributions as coming first from its C corporation accumulated earnings and profits if all shareholders who receive a distribution during the tax...
-
Demand and inventory on hand for five SKUs are presented in Table 2: Given that the demands are deterministic and in manhours, and the available manhours (Pt) for a cycle is 3000, i. determine the...
-
The ledger of Falcone Company includes the following account balances on 2009 September 30: Appropriation for contingencies $210,000 Appropriation for plant expansion 392,000 Retained earnings,...
-
Berry uses a perpetual The inventories of Berry Company for the years 2 0 1 9 and 2 0 2 0 are as follows: Cost NRV January 1 , 2 0 1 9 $ 1 0 , 0 0 0 $ 1 0 , 0 0 0 December 3 1 , 2 0 1 9 1 3 , 0 0 0 1...
-
What can you tell just by looking at the yield curve?
-
4. Products A, B, C, and D have contribution margins of $2.00, $3.00, $4.00, and $5.00, respectively, and require 1.5, 2, 2.5, and 3 machine hours per unit, respectively. Assuming that all units...
-
In January. 2 0 2 1 , Siemens Engineering Co . signed a $ 2 4 0 million contract to construct a new city hall within two years. The city will pay $ 1 8 0 million upfront, and the rest $ 6 0 million...
-
Suppose Dynamo Energy has taxable income of $ 2 , 0 0 0 , 0 0 0 per year and is purchasing a new piece of equipment for $ 1 , 0 0 0 , 0 0 0 . The IRS gives it the option of depreciating the full...
-
If A = [-4 0 0 4 0 -2 4A-3B= -3-31 2 -3 -1 4 3 000 000 000 4 -2 and B = -2 0 14 , then
-
When you weigh yourself on good old terra firma (solid ground), your weight is 142 lb. In an elevator your apparent weight is 121 lb. What are the direction and magnitude of the elevator's...
-
Jeanette Corporations president is in a dilemma regarding which inventory method (LIFO or FIFO) to use. The controller provides the following list of factors that should be considered before making a...
-
Lino Companys worksheet for the preparation of its 2014 statement of cash flows included the following information: Linos 2014 net income is $150,000. Required: What amount should Lino include as net...
-
Silverado Inc. buys titanium from a supplier that requires a six-month firm commitment on all purchases. On January 1, 2014, Silverado signs a contract with the supplier to purchase 10,000 pounds of...
-
In the FRED database, find a variable that is available in both a seasonally adjusted form and a not seasonally adjusted form. Plot both over time and describe how large the seasonal variation in the...
-
Graph the levels of real GDP for the United States, Canada, and Germany (data can be found at www.oecd.org under Statistics and then under National Accounts). Are U.S. and Canadian business cycles...
-
How does each of the following variables behave over the business cycle? Develop graphs to show your results and give economic explanations. a. Real imports b. Federal government receipts c. Housing...
Study smarter with the SolutionInn App