Sandhill Company sells goods that cost $300,000 to Tom Company for $415,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $40,800. The fair value of the goods is $384,200. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, Tom pays Sandhill $264,000 on delivery of the goods and the balance at the completion of the installation.
Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Sandhill. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25% and final answers to 0 decimal places, e.g. 5,275.)
|Performance Obligation||When?||How much?|
|Deliver goods||choose a transaction date January 2, 2023March 1, 2023June 18, 2023||$enter a dollar amount rounded to 0 decimal places|
|Installation||choose a transaction date January 2, 2023March 1, 2023June 18, 2023||enter a dollar amount rounded to 0 decimal places|
|Total||$enter a total amount rounded to 0 decimal places|
The parts of this question must be completed in order. This part will be available when you complete the part above.
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