O'Hara Links Products Sells a Product That Involves Two Separate

question 107

Multiple Choice

O'Hara Links Products sells a product that involves two separate performance obligations: the SwingRight golf club weight and the SwingCoach teaching software. SwingRight has a stand-alone selling price of $150, and material uncertainties prevent O'Hara from developing a reliable estimate of the standalone selling price of the SwingCoach software. O'Hara sells both the SwingRight and the SwingCoach as a package deal of $200. How much of the transaction price would be allocated to the SwingCoach teaching software?

• A)$50.
• B)$80.
• C)$100.
• D)Cannot be calculated from the information given.

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Definitions:

Control

The power to direct the management and policies of a company or organization, often through ownership of a majority of shares.

Expansion

Expansion refers to the process of growing or enlarging the scale, scope, or reach of something, such as a business, territory, or concept.

Limited Partnership

A partnership formed by two or more persons having one or more general partners and one or more limited partners.

Defendant

The person against whom a lawsuit is brought and from whom recovery is sought.