The transaction price allocated to the pool and the installation is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carla Vista Company sells prefabricated pools that cost $87000 to customers for $136935. The sales price includes an installation fee, which is valued at $19300. The fair value of the pool is $132850. The installation is considered a separate performance obligation and is expected to take 3 months to complete. The transaction price allocated to the pool and the installation is
$136935 and $19300 respectively
$132850 and $19300 respectively
$119565 and 17370 respectively
$112073 and $24862 respectively
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