BoTeck Is a Full-Service Technology Company

question 21

Multiple Choice

BoTeck is a full-service technology company. It provides equipment, installation services, and training services. Customers can purchase any product or service separately or as a bundled package. On May 3, Box-Rite Corporation purchased computer equipment, installation, and training for a total cost of $120,000. Estimated stand- alone fair values of the equipment, installation, and training are $75,000, $50,000, and $25,000 respectively. The transaction price allocated to equipment, installation and training is

• A) $75,000, $50,000, and $25,000 respectively.
• B) $60,000, $40,000 and $20,000 respectively.
• C) $40,000, $40,000, and $40,000 respectively.
• D) $120,000 for the entire bundle.

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Definitions:

Employee Referrals

A recruitment method where existing employees recommend potential candidates for open positions.

Employee Overtime

Extra hours worked beyond the standard workweek, often compensated at a higher pay rate according to labor laws and agreements.

Technological Innovation

The process of developing and applying new technologies to create value or solve problems.

Outsourcing

The business practice of hiring a third party to perform services, handle operations or provide goods that are either cost-prohibitive or not within the company's core competencies.