On December $31,2022,$ Golden Egg Company sells farming equipment to Feather Inc. for $$50,000.$ Golden Egg includes a one$-$year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December $31,2022.$ Golden Egg estimates the prices to be $$48,800$ for the equipment and $$1,200$ for the cost of warranty.

Required

Are the sale of the equipment and the warranty separate performance obligations within the contract? Explain.

Prepare the journal entry to record this transaction on December $31,2022.$ Ignore any related cost of goods sold entry.

Repeat the requirements for part $2,$ assuming that, in addition to the assurance warranty, Golden Egg sold an extended warranty $($service$-$type warranty$)$ for an additional two years $(20242025)$ for $$800.$