Seneca contracted with a client to sell a machine and give three years of maintenance. services provided for it The entire amount due is $200,000 The business found that the equipment and the Maintenance services are separate performance responsibilities. Frequently, the corporation sells machines individually.
at an independently verifiable selling price of $160,000. But it does not offer maintenance services on a standalone basis. Using a strategy based on predicted costs plus a suitable margin margin, the estimated standalone $90,00 was the selling price for three years of maintenance services. The price of the transaction is given to each Allocation of the Contract Price using comparable standalone calculate selling price.

Answer rating: 100% (QA)

Selling price ... View the full answer