Engelhart Implements Inc. sells tractors to area farmers. The price for each tractor includes GPS positioning service for 9 months (which facilitates field settings for planting and harvesting equipment). The GPS service is regularly sold on a standalone basis by Engelhart for a monthly fee. After the 9-month period, the consumer can renew the service on a fee basis How many performance obligations exist in this contract? Select one: a. More than three performances b. Three performances c. One performance d. Two performances
Engelhart Implements Inc. sells tractors to area farmers. The price for each tractor includes GPS positioning service for 9 months (which facilitates field settings for planting and harvesting equipment). The GPS service is regularly sold on a standalone basis by Engelhart for a monthly fee. After the 9-month period, the consumer can renew the service on a fee basis How many performance obligations exist in this contract? Select one: a. More than three performances b. Three performances c. One performance d. Two performances
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Engelhart Implements Inc. sells tractors to
area farmers. The price for each tractor
includes GPS positioning service for 9
months (which facilitates field settings for
planting and harvesting equipment). The
GPS service is regularly sold on a
standalone basis by Engelhart for a
monthly fee. After the 9-month period, the
consumer can renew the service on a fee
basis
How many performance obligations exist in
this contract?
Select one:
а.
More than three performances
O b. Three performances
C.
One performance
d. Two performances
O O D
|l>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45b63c76-f03e-4faf-9a2f-8c04fc62cda0%2F59646fef-0124-476d-bf6c-debf9d2ddcf2%2F8vljqv9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Engelhart Implements Inc. sells tractors to
area farmers. The price for each tractor
includes GPS positioning service for 9
months (which facilitates field settings for
planting and harvesting equipment). The
GPS service is regularly sold on a
standalone basis by Engelhart for a
monthly fee. After the 9-month period, the
consumer can renew the service on a fee
basis
How many performance obligations exist in
this contract?
Select one:
а.
More than three performances
O b. Three performances
C.
One performance
d. Two performances
O O D
|l>
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