Reference no: EM132952295

Konza Son Bhd sells a heavy machinery with one year's free maintenance service support for RM75,000. It usually sells the heavy machinery for RM90,000 but does not sell maintenance service support for this machinery as a stand alone product. Other maintenance service support services offered by Konza Sdo Bud attract a mark-up of 30%. It is expected that the maintenance service support will cost Konza Sdo Bad for RM15.000

Problem 1: What is the amount of revenue to be recognized for the heavy machinery?

Option 1: RM64,644

Option 2: RM62,644

Option 3: RM61,644

Option 4: RM63,644

Problem 2: What is the stand-alone price for the maintenance service support?

Option 1: RM20,500

Option 2: RM22,500

Option 3: RM19,500

Option 4: RM21,500

Problem 3: Which of the following stage correctly describes by the above case?

Option 1: Allocate the transaction price.

Option 2: Determine the transaction price.

Option 3: Identify the separate performance obligations within a contract

Option 4: Identify the contract