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aleksley [76]
3 years ago
15

Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects. When custo

mers purchase a Tornado, they also have the option to purchase an extended three-year warranty that covers any breakage or maintenance. The extended warranty sells for the same amount regardless of whether it is purchased at the same time as the Tornado or at some other time. How many performance obligations exist in the implied contract for the purchase of a vacuum cleaner?
Business
1 answer:
Alik [6]3 years ago
5 0

Answer:

1. The obligation to transfer the vacuum cleaner in lieu of the price.

2. To honour one year warranty for any product defect that is part of the purchase contract and an inherent obligation.

Explanation:

The contract for purchase of a vacuum cleaner has two performance obligations;

1. The obligation to transfer the vacuum cleaner in lieu of the price.

2. To honour one year warranty for any product defect that is part of the purchase contract and an inherent obligation.

it may be noted that the extended warranty is a separate performance obligation as it can be purchased at the same time of original purchase or later and separate consideration is payable for that and there is no direct co-relation of the extended warranty obligation with the initial purchase.

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Explanation:

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3 years ago
Which of the following is an example of a qualitative materiality factor? The client installed a new security system to protect
ycow [4]

Answer:

A. The client installed a new security system to protect the building

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3 years ago
Jana reports the following income and loss Salary Income from activity A Loss from activity B Loss from activity C 120,000 60,00
sergejj [24]

Answer:

Based on this information, Jana will recognize- salary of $120,000 and net passive losses of $40,000 that will be carried over.  (B)

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