Which of the following would be an example of multiple performance obligations? Customer accepts delivery for...

Which of the following would be an example of multiple performance obligations? Customer accepts delivery for a new outdoor spa tub Contractor is hired to fix an overhead door and replaces several parts including springs and tracks. Customer purchases a new gas range and two-year extended warranty . Customer purchases a family pack of tickets to the Wolves football team that includes multiple tickets for the same game.

Expert Solution

Customer accepts delivery for a new outdoor spa tub Contractor is hired to fix an overhead door and replaces several parts including springs and tracks - In this case there is only one performance obligation of fixing the door with or using parts to completing the fixing of door.

Customer purchases a new gas range and two-year extended warranty - In this case there are two performance obligations such as Purchasing a new gas range as one performance obligation and extention related to warranty is a another performance obligation. Hence there are multiple performance obligations.

Customer purchases a family pack of tickets to the Wolves football team that includes multiple tickets for the same game - Purchase of family pack of tickets is a single performance obligation since tickets for same games in multiple does not indicate as mutiple perofrmance obligations.

So answer is Customer purchases a new gas range and two-year extended warranty.

ekkarill92 answered 2 years ago

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Which of the following would be an example of multiple performance obligations? Customer accepts delivery for...

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