Please do not give solution in image format thanku On July 15, 2021, Omz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $94,800 The system included finely tuned scales that fit intoEverFresh's automated assembly line, Ott's proprietary software modified to allow the weighing system to function in EverFresh's automated system, and a one-year contract to calibratethe equipment and software on an as-needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for Ortiz's systems) if Ortiz was to provide these goods orservices separately, it would charge $64,000 for the scales. $10.000 for the software and $25,000 for the calibration contract. Ortiz delivered and installed the equipment and softwareon August 1, 2021, and the calibration service commenced on that date.Assume that the scales, software and calibration service are all separate performance obligations How much revenue wil Ortiz recognize in 2021 for this contract?DMuttle Choice$70152$94.800380,422

The revenue recognition principle helps companies to determine how and when the revenue is to be…

Answered: Assume that the scales, software and…

Assume that the scales, software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2021 for this contract?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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