Johnnie

Walker

sells a product that involves two separate performance

obligations: the Whisky

Right distillery kit

and the

Whisky

Coach teaching

software. WhiskyRight has a stand

-alone selling price of $150.

Johnnie Walker

sells both the Whisky

Right and the WhiskyCoach as a package deal for $200.

The WhiskyCoach software is not sold separately.

U

sing the residual approach

,

how much of the package deal selling price would get allocated to the

Whisky

Coach teaching software?

A)

$80.00

B)

$50.00

C)

$90.00

D)

$97.50