Professional Documents
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A software developer, enters into a contract with a customer to transfer a software licence, perform an
installation service and provide unspecified software updates and technical support (online and
telephone) for a two-year period. They sell the licence, installation service and technical support
separately. The installation service includes changing the web screen for each type of user (for example,
marketing, inventory management and information technology). The installation service is routinely
performed by other entities and does not significantly modify the software. The software remains
functional without the updates and the technical support.
Required
Manufacturing Co. entered into a contract with a customer to sell a machine for $100,000. The total
contract price included installation of the machine and a two-year extended warranty. Assume that
Manufacturing Co. determined there were three distinct performance obligations and the stand-alone
selling prices of those performance obligations were as follows:
Machine — $75,000,
Required
ACTIVITY 3
Required
Prepare relevant extracts from the statement of comprehensive income and statemenet of financial
position
ACTIVITY 4
Required
Prepare relevant extracts from the statement of comprehensive income and statement of financial
position.
ACTIVITY 5
Required
Prepare relevant extracts from the statement of comprehensive income and statenment of financial
position