Answer
Engelhart has multiple performance obligations because (1) a new tractor shall come with 9 months of GPS while (2) the GPS system can be sold as a standalone.
Work Step by Step
The 1st and 2nd above shall be accounted separately.
Intermediate Accounting (16th Edition)
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
1118743202
ISBN 13:
978-1-11874-320-1
Chapter 18 - Revenue Recognition - Review and Practice - Questions - Page 1031: 11
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