1. ABC company wrote a contract that involves two performance obligations. Product A has a stand-alone selling price of $100, and product B has a stand-alone selling price of $150. The price for the combined product is $200.

Required: What is the transaction price would be allocated to the performance obligation for delivering product A and B?

2

. Bichchell wrote a contract that involves two separate performance obligations. Bichchell

cannot estimate the stand-alone selling price of product A. Product B has a stand-alone selling price of $150. The price for the combined product is $200.

Required: What is the transaction price would be allocated to the performance obligation for delivering product A (use the residual method)?