What amount of revenue would quenneville report

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So, in reviewing these methods in more detail, let us say we have the following case: On January 1, 20X1, Quenneville Corporation sold equipment to Wirtz, Inc., for $500,000. The equipment had cost $300,000 to manufacture. The contract with Wirtz requires Quenneville to provide complete maintenance and repair services on the equipment for five years. Quenneville's cost to provide the services are $10,000 per year. Quenneville sells the five-year maintenance and repair services contracts separately for $90,000. Quenneville uses the residual approach to allocate the $500,000 transaction price between the two performance obligations: delivery of the equipment and the maintenance and repair services. So, what amount of revenue would Quenneville report in 20X1? Get the instant assignment help. Also, what amount of earnings before taxes would Quenneville report in 20X1? Can you elaborate further? Thanks so much and talk soon!

Reference no: EM133921795

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