Oriole Company manufactures equipment. Oriole's products range from simp containing numerous components. Unit selling prices range from $400,000 to The installation process does not involve changes to the features of the equipr about the equipment in order for the installed equipment to perform to specif Henderson Inc. Henderson purchases equipment from Oriole for a price of $1,020,000 Oriole charges the same price for the equipment irrespective of wheth equipment is $643,000. Henderson is obligated to pay Oriole the $1,020,000 upon the delivey Oriole delivers the equipment on June 1, 2020, and completes the installation equipment has a useful life of 10 years. Assume that the equipment and the in which should be accounted for separately. Assuming Oriole does not have market data with which to determine the stan result, an expected cost plus margin approach is used. The cost of installationi margin relative to cost. (a)

Oriole Company manufactures equipment. Oriole's products range from simp containing numerous components. Unit selling prices range from $400,000 to The installation process does not involve changes to the features of the equipr about the equipment in order for the installed equipment to perform to specif Henderson Inc. Henderson purchases equipment from Oriole for a price of $1,020,000 Oriole charges the same price for the equipment irrespective of wheth equipment is $643,000. Henderson is obligated to pay Oriole the $1,020,000 upon the delivey Oriole delivers the equipment on June 1, 2020, and completes the installation equipment has a useful life of 10 years. Assume that the equipment and the in which should be accounted for separately. Assuming Oriole does not have market data with which to determine the stan result, an expected cost plus margin approach is used. The cost of installationi margin relative to cost. (a)

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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How much of the transaction price would the company allocate to its performance obligation to provide the needed services to the customer?provide in good accounting form
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