hard · Financial Accounting revenue-recognition
A car dealer sells a vehicle for $30,000 cash and includes a 3-year free maintenance plan. The dealer usually sells the same vehicle without the plan for $29,500 and sells the maintenance plan separately for $1,000.
Under Step 4 of ASC 606, what is the revenue allocated to the vehicle?
- $29,016
- $30,000
- $29,500
- $29,000
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