A company sells equipment to customers for $491,000 on January 1st, 2021. The sales price includes an installation fee, which has a fair value of $125,000. The installation is considered a separate performance obligation and is expected to take two months to complete. The fair value of the equipment is $375,000. On January 1st, 2021, the company should record Unearned Service Revenue of $ . (If the company should not record any Unearned Service Revenue,
A company sells equipment to customers for $491,000 on January 1st, 2021. The sales price includes an installation fee, which has a fair value of $125,000. The installation is considered a separate performance obligation and is expected to take two months to complete. The fair value of the equipment is $375,000. On January 1st, 2021, the company should record Unearned Service Revenue of $ . (If the company should not record any Unearned Service Revenue,
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 6P
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A company sells equipment to customers for $491,000 on January 1st, 2021. The sales price includes an installation fee, which has a fair value of $125,000. The installation is considered a separate performance obligation and is expected to take two months to complete. The fair value of the equipment is $375,000. On January 1st, 2021, the company should record Unearned Service Revenue of $ . (If the company should not record any Unearned Service Revenue, then enter 0.) (Do not round your answers in any part of the computation.)
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