Construct equipment for the customer

Assignment Help Financial Accounting

Reference no: EM131288583

Entity M, a parts supplier, enters into contract with an OEM (i.e., M’s customer) for fixed consideration of $30 million to (1) construct equipment for the customer that M will use to make parts for the customer and (2) supply 30 million parts to the customer.

Legal title of the equipment transfers to the customer upon completion of the construction of the equipment (i.e., prior to M beginning production of the parts).

M is one of many companies that have the ability to both construct the equipment and subsequently produce the parts.

How many performance obligations does the contract have? Explain.

Reference no: EM131288583

Questions Cloud

What is the main mission of the bolts in any joint : What is the main mission of the bolts in any joint? What factor largely determines the behavior and life of a tensile joint? Why are bolted joints often called live joints as compared to welded, riveted, or bonded joints?

What was the purchase price : A bond has a face (par) value of $12,425; it will mature in 11 years. The bond coupon rate is 4.8%; there are 6 premium payments per year. Suppose that an investor will earn a nominal interest rate of 6.2% on this bond; what was the purchase price?

Computation of tax : Computation of Tax. The following information relates to two married couples: Lanes Salary (earned by one spouse) $32,000, Interest income 1,000 , Deductible IRA contribution 5,000, Itemized deductions 15,000 , Exemptions 8,100 , Withholding 700. Com..

Would commercial banker be willing to lend money to abramses : Would a commercial banker be willing to lend money to the Abramses? How much? On what do you base your answer? Would this venture have any appeal for a venture capitalist? Why or why not?

Construct equipment for the customer : Entity M, a parts supplier, enters into contract with an OEM (i.e., M’s customer) for fixed consideration of $30 million to (1) construct equipment for the customer that M will use to make parts for the customer and (2) supply 30 million parts to the..

Evaluate the role and effectiveness of the federal reserve : Evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy. Determine which economic indicators the Federal Reserve should analyze so it can better stabilize this particular economy.

The components of stockholders equity : The stockholders’ equity section of Pretzer Corporation consists of common stock ($10 par) $1,600,000 and retained earnings $511,000. A 10% stock dividend (16,000 shares) is declared when the market price per share is $15. Show the before-and-after e..

Marketing by the numbers demographic trends : Do you know of Danica from the Philippines, Peter from London, Nargis from India, Marina from Russia, Chieko from Japan, or Miran from the United States?

Explain how would the merger benefit the firms : Explain whether the competitive environment in this industry benefits society or not. Is a high degree of market concentration a boon or threat to consumers? Explain. How would the merger benefit the firms?

User Account

All Pages