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Bella Pool Company sells prefabricated pools that cost $100,000 to customers for $180,000. The sales price includes an installation fee, which is...
Bella Pool Company sells prefabricated pools that cost $100,000 to customers for $180,000. The sales price includes an installation fee, which is valued at $25,000. The fair value of the pool is $160,000. 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
a. $155,676 and $24,324 respectively
b. $160,000 and $25,000 respectively
c. $180,000 and $25,000 respectively
d. $138, 378 and $21,622 respectively