Bella Pool Company sells prefabricated pools that cost P100,000 to customers for P180,000. The sales price includes an installation fee, which is valued at P25,000. The fair value of the pool is P160,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. The transaction price is allocated to the pool and the installation is: a. P155,676 and P24,324 respectively b. P160,000 and P25,000 respectively

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...
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Bella Pool Company sells prefabricated pools that cost P100,000 to customers for P180,000. The sales price includes an installation fee, which is valued at P25,000. The fair value of the pool is P160,000. The installation is considered a separate performance obligation and is expected to take 3
months to complete. The transaction price is allocated to the pool and the installation is:
a. P155,676 and P24,324 respectively
b. P160,000 and P25,000 respectively

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