On Setpember 15, 2019, Lopez, Inc. contracted to provide Cluck-Cluck Chicken Processing, LLC with an assembly-line component system for a price of $180,000. The system included a finely tuned device that controls the amount of food that goes into each portion by weight, Lopez’s proprietary software modified to allow the weighing system to function in Cluck-Cluck’s automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. If Lopez was to provide these goods or services separately, it would charge $120,000 for the scales, $20,000 for the software, and $60,000 for the calibration contract. Lopez delivered and installed the equipment and software on August 1, 2020, and the calibration service commenced on that date. How many performance obligations exist in this contract? Group of answer choices 1 2 3 0
On Setpember 15, 2019, Lopez, Inc. contracted to provide Cluck-Cluck Chicken Processing, LLC with an assembly-line component system for a price of $180,000. The system included a finely tuned device that controls the amount of food that goes into each portion by weight, Lopez’s proprietary software modified to allow the weighing system to function in Cluck-Cluck’s automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. If Lopez was to provide these goods or services separately, it would charge $120,000 for the scales, $20,000 for the software, and $60,000 for the calibration contract. Lopez delivered and installed the equipment and software on August 1, 2020, and the calibration service commenced on that date.
How many performance obligations exist in this contract?
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