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Morgan Company and its customer agree to modify their existing contract. Under which of the following situations would the modification result in a new contract? a. The modification adds distinct goods or services, and the contract price increases by an amount that reflects die stand-alone selling price of additional goods or services. b. The modification only affects the transaction price. c. The modification adds distinct goods or services but does not change the contract price. d. The modification does not add distinct goods or services but does not affect the transaction price.

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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 17, Problem 3MC
Textbook Problem

Morgan Company and its customer agree to modify their existing contract. Under which of the following situations would the modification result in a new contract?

  1. a. The modification adds distinct goods or services, and the contract price increases by an amount that reflects die stand-alone selling price of additional goods or services.
  2. b. The modification only affects the transaction price.
  3. c. The modification adds distinct goods or services but does not change the contract price.
  4. d. The modification does not add distinct goods or services but does not affect the transaction price.

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Chapter 17 Solutions

Intermediate Accounting: Reporting And Analysis
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