On 1 October 2020, Maximus sold a machine to a customer for £200,000 (excluding value added tax), and the customer paid in full when the machine was delivered on that date. In addition to the machine, Maximus agreed to provide maintenance for four years ending on 30 September 2024. Maximus has allocated £182,000 of the transaction price to the machine and £18,000 to the maintenance agreement. How much revenue should Maximus recognise from this sale in its income statement for the year to 31 December 2020? Select one: £183,125 £182,000 £186,500 £200.000

On 1 October 2020, Maximus sold a machine to a customer for £200,000 (excluding value added tax), and the customer paid in full when the machine was delivered on that date. In addition to the machine, Maximus agreed to provide maintenance for four years ending on 30 September 2024. Maximus has allocated £182,000 of the transaction price to the machine and £18,000 to the maintenance agreement. How much revenue should Maximus recognise from this sale in its income statement for the year to 31 December 2020? Select one: £183,125 £182,000 £186,500 £200.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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