Incorrect Question 23 0/1 pts Cellular, Inc. is offering a promotion for new customers signing a contract: Purchase a new handset, a one-year service agreement, and set of headphones for $710. The transaction price as stated to the customer is $150 for the headset, $480 for the one-year service agreement, and $80 for the set of headphones. Allocate the $710 transaction price under the following scenario: Two of the three items (service and handset) are sold separately by Cellular. The standalone selling prices of the handset and one-year service agreement are $200 and $480 respectively. Because Cellular has never sold headphones prior to this promotion, Cellular determined the average selling price of similar headphones in the market place to be $100. Using the Market Assessment Approach, allocate the transaction price to each of the three performance obligations: 1. Handset 200 2. One-year Service Agreement 480 80 3. Set of Headphones *when calculating your answer, do not round your ratio. Only round your final answer to the nearest whole dollar. You do not need to enter a $ sign. For example, if you determine the Handset represents $200 out of a $760 "package", your ratio is .2631578947 (do not round this ratio). Apply this ratio to your transaction price to allocate the price to this performance obligation Incorrect Question 17 0/1 pts On January 1, 20x1, a franchisor grants a license to a franchisee to use the franchisor's trade name of Tasty Taco and to sell the Tasty Taco menu for 10 years. The license is a contract between the franchisee and the franchisor. The franchisor receives a fixed fee of $500,000 on January 1, 20x1, plus a royalty equal to 5% of customer's sales over the term of the license of 10 years. The franchisor expects to provide services related to the license evenly over the license term. These activities are customary business practices of the franchisor and include product improvements, pricing strategies, advertising campaigns, and operational suggestions to support the franchise name and venue. None of these activities directly transfers goods or services to the franchisee. Required: Determine how much Franchise Revenue the franchisor can recognize on December 31, 20x1 assuming that the franchisee reported sales of $350,000 for all of 20x1. (Do not use a dollar $ sign or comma in recording your answer.) 517500 Incorrect Question 21 0/1 pts Which of the following can be used to estimate the standalone selling price of a performance obligation in a contract with customers when that price is not directly observable? Adjusted Market Assessment Expected Cost Plus a Margin Yes No Yes Yes No No No Yes Answer A Answer A. You selected this answer. Answer B Answer C Answer D