Norton Protect Software sells a subscription to its antivirus software along with a subscription

renewal option that allows renewal at half the prevailing price for a new subscription.

a$.$ How many performance obligations exist in this contract?

Timeless Timepieces, Inc., specializes in designing and installing customized manufacturing

equipment. On February $1,20$x$3,$ it signs a contract to design and install a fully automated

wristwatch assembly line for $$2$ million, which will be settled in cash upon completion of

construction. Timeless will install the equipment on the client's property, furnish it with a

customized software package that is integral to operations, and provide consulting services that

integrate the equipment with Precision's other assembly lines.

a$.$ How many performance obligations exist in this contract?

On January $1,20$x$3,$ Carlito's Construction Company signed a contract to build a custom garage

for a customer and received $$10,000$ in advance for the job. The new garage will be built on the

customer's land. To complete this project, Carlito must first build a concrete floor, construct

wooden pillars and walls, and finally install a roof. Carlito normally charges stand$-$alone prices of

$$3,000,$$$4,000,$ and $$5,000,$ respectively, for each of these three smaller tasks if done separately.

a$.$ How many performance obligations exist in this contract?