Chapter 8, Problem 8.4MC

The transaction price must reflect the time value of money if:

1. a. The vendor expects the period between customer payment and delivery of goods or services will be less than two years.
2. b. The contract has a financing component that is significant to the contract.
3. c. The interest rate in the contract is higher than 13%.
4. d. Consideration would not differ if paid in cash or under normal credit terms.