E3-3 (Static) Identifying Performance Obligations and Timing Revenue Recognition [LO3-1, 3-2] Sirius XM Holdings Incorporated sells a dash-top satellite radio receiver and one-year subscription for a total price of $80. By purchasing this deal, the subscriber is entitled to receive hardware (i.e., the radio), a software update that is automatically downloaded every second month to the radio, and continuous music service for one year from the date the hardware is delivered. Required: Identify the performance obligation(s) in this contract, and indicate whether the revenue should be recognized at a Point in time or Over time for each identified performance obligation. If the Performance Obligation is "No", then mark the Revenue recognized column with "Not affected". Sign contract Deliver radio Provide download of software update Provide monthly music service Performance Obligation? Revenue Recognized
E3-3 (Static) Identifying Performance Obligations and Timing Revenue Recognition [LO3-1, 3-2] Sirius XM Holdings Incorporated sells a dash-top satellite radio receiver and one-year subscription for a total price of $80. By purchasing this deal, the subscriber is entitled to receive hardware (i.e., the radio), a software update that is automatically downloaded every second month to the radio, and continuous music service for one year from the date the hardware is delivered. Required: Identify the performance obligation(s) in this contract, and indicate whether the revenue should be recognized at a Point in time or Over time for each identified performance obligation. If the Performance Obligation is "No", then mark the Revenue recognized column with "Not affected". Sign contract Deliver radio Provide download of software update Provide monthly music service Performance Obligation? Revenue Recognized
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
D1.
Account
![E3-3 (Static) Identifying Performance Obligations and Timing Revenue Recognition [LO3-1, 3-2]
Sirius XM Holdings Incorporated sells a dash-top satellite radio receiver and one-year subscription for a total price of $80. By
purchasing this deal, the subscriber is entitled to receive hardware (i.e., the radio), a software update that is automatically downloaded
every second month to the radio, and continuous music service for one year from the date the hardware is delivered.
Required:
Identify the performance obligation(s) in this contract, and indicate whether the revenue should be recognized at a Point in time or
Over time for each identified performance obligation. If the Performance Obligation is "No", then mark the Revenue recognized column
with "Not affected".
Sign contract
Deliver radio
Provide download of software update
Provide monthly music service
Performance
Obligation?
Revenue
Recognized](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32c0cfc8-ebc2-43a6-9c48-ae841504d819%2F2751cc87-1f36-4a18-bf87-5aa88f4a3090%2F48vmjx8_processed.png&w=3840&q=75)
Transcribed Image Text:E3-3 (Static) Identifying Performance Obligations and Timing Revenue Recognition [LO3-1, 3-2]
Sirius XM Holdings Incorporated sells a dash-top satellite radio receiver and one-year subscription for a total price of $80. By
purchasing this deal, the subscriber is entitled to receive hardware (i.e., the radio), a software update that is automatically downloaded
every second month to the radio, and continuous music service for one year from the date the hardware is delivered.
Required:
Identify the performance obligation(s) in this contract, and indicate whether the revenue should be recognized at a Point in time or
Over time for each identified performance obligation. If the Performance Obligation is "No", then mark the Revenue recognized column
with "Not affected".
Sign contract
Deliver radio
Provide download of software update
Provide monthly music service
Performance
Obligation?
Revenue
Recognized
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