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.

---

Definitions:

Entry Price

Refers to the initial cost at which an asset, security, or investment is purchased, marking the basis for future financial analysis.

Equity Instrument

A financial instrument indicating ownership in an entity, such as common stock or preferred shares, that represents a claim on the entity's residual assets after liabilities have been deducted.

Risk Management Strategy

A process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Net Exposure Basis

A method of measuring risk that combines both the gross positive and negative positions to determine an entity's overall exposure.