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nlexa [21]
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]3 years ago
8 0

Answer:

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

Explanation:

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