On January 1, 2018, Lego Construction Company signed a contract to build a custom garage for a customer andreceived $10,000 in advance for the job. The new garage will be built on the customer’s land. To complete thisproject, Lego must first build a concrete floor, construct wooden pillars and walls, and finally install a roof. Legonormally charges stand-alone prices of $3,000, $4,000, and $5,000, respectively, for each of these three smallertasks if done separately. How many performance obligations exist in this contract?

On January 1, 2018, Lego Construction Company signed a contract to build a custom garage for a customer andreceived $10,000 in advance for the job. The new garage will be built on the customer’s land. To complete thisproject, Lego must first build a concrete floor, construct wooden pillars and walls, and finally install a roof. Legonormally charges stand-alone prices of $3,000, $4,000, and $5,000, respectively, for each of these three smallertasks if done separately. How many performance obligations exist in this contract?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 40P

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