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Accounting Problem: Cost allocation Laila Pool Company sells prefabricated pools that cost $100,000 to customers for $180,000. The sales price includes an installation fee, which is valued at $25,000. The fair value of the pool is $160,000. 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 a. $150,986 and $22,124 respectively b. $160,000 and $25,000 respectively c. $180,000 and $25,000 respectively d. $138, 378 and $21,622 respectively e. $155,676 and $24,324 respectively

Accounting Problem: Cost allocation Laila Pool Company sells prefabricated pools that cost $100,000 to customers for $180,000. The sales price includes an installation fee, which is valued at $25,000. The fair value of the pool is $160,000. 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 a. $150,986 and $22,124 respectively b. $160,000 and $25,000 respectively c. $180,000 and $25,000 respectively d. $138, 378 and $21,622 respectively e. $155,676 and $24,324 respectively

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...
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Accounting Problem: Cost allocation Laila Pool Company sells prefabricated pools that cost $100,000 to customers for $180,000. The sales price includes an installation fee, which is valued at $25,000. The fair value of the pool is $160,000. 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 a. $150,986 and $22,124 respectively b. $160,000 and $25,000 respectively c. $180,000 and $25,000 respectively d. $138, 378 and $21,622 respectively e. $155,676 and $24,324 respectively
Transcribed Image Text:Accounting Problem: Cost allocation Laila Pool Company sells prefabricated pools that cost $100,000 to customers for $180,000. The sales price includes an installation fee, which is valued at $25,000. The fair value of the pool is $160,000. 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 a. $150,986 and $22,124 respectively b. $160,000 and $25,000 respectively c. $180,000 and $25,000 respectively d. $138, 378 and $21,622 respectively e. $155,676 and $24,324 respectively
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