(solution) 1. What characteristics make a good or service a performance obligation? 2. How does a seller…

(solution) 1. What characteristics make a good or service a performance obligation? 2. How does a seller…

1. What characteristics make a good or service a performance obligation? 2. How does a seller allocate a transaction price to a contract’s performance obligations? 3. What must a contract include for the contract to exist for purposes of revenue recognition? 4. When a contract includes an option to buy additional goods or services, when does that option give rise to a performance obligation?