Question: On July 15, 2021, Orit & Co. signed a contract to provide EverFresh Bakery with an ingredient welghing system for price of $90,000. The system
On July 15, 2021, Orit & Co. signed a contract to provide EverFresh Bakery with an ingredient welghing system for price of $90,000. The system included finely tuned scales that fit into Everfresh's automatod assembly fine, Ortiz's proprietary software modified to allow the welghing system to function in Everfresh's automated system, and a one- year contract to calibrate the equipment and software on an as needed basis. Ortiz competes with other vendors who offer ongoing calibration contracts for Orte's systems.) Ortiz was to provide these goods or services separately, it would charge 560,000 for the scales, 510,000 for the software, and $30,000 for the calibration contract. Ortiz dellvered and installed the equipment and software on August 1, 2021, and the calibration service commenced on that date Assume that the scales, software and calibration service are viewed as one performance obligation. How much revenue will Onix recognize in 2021 for this contract? Multiple Choice o 50 337,500 563.000 S90.000
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