The transaction price allocated to the pool and the installation is

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 3C
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X Your answer is incorrect.
Wildhorse Company sells lap lane pools that cost $50400 to customers for $128300. The sales price includes an installation fee, which
is valued at $20700. The fair value of the pool is $103700. The installation is considered a separate performance obligation and is
expected to take 3 months to complete. The transaction price allocated to the pool and the installation is
O $128300 and $20700, respectively.
Transcribed Image Text:X Your answer is incorrect. Wildhorse Company sells lap lane pools that cost $50400 to customers for $128300. The sales price includes an installation fee, which is valued at $20700. The fair value of the pool is $103700. The installation is considered a separate performance obligation and is expected to take 3 months to complete. The transaction price allocated to the pool and the installation is O $128300 and $20700, respectively.
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