Telecom Co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month.

Question

3 years ago

6

Telecom Co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month.

To induce customers, Telecom Co. provides a free phone. Telecom Co. normally sells the phone on a stand-alone basis for $200. Telecom Co. also charges the customer a one-time activation fee of $35. Which of the following is true? A. The free phone constitutes a marketing expense. B. The activation fee is a separate performance obligation. C. There are two distinct performance obligations: the wireless service and the phone. D. There are two distinct performance obligations: the voice service and the data service.

Business

1 answer:

aksik [14] · Answer 1 · 2022-06-23T17:58:12+03:00

aksik [14]3 years ago

8 0

Answer:

There are two distinct performance obligations: the voice service and the data service

Explanation:

Telecom Co. enters into a​ two-year contract with a customer to provide wireless service​ (voice and​ data) for​ $40 per month.

Telecom Co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month.