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IFRS 15 defines the transaction price. Which one of the following statements is reasonable? United Farmers Inc. transfers an item of equipment that Rural Electricity Supplied Ltd. must use to provide United Farmers Inc. with ongoing access to a supply of electricity. The equipment has a fair value of MU900,000. Rural Electricity Supplied Ltd.s transaction price does not take into account equipment provided by the customer. Off Road Ltd. sells a new dual-cab 4-wheel drive motor vehicle to Mr. and Mrs. Smith for MU88,000. The local government requires that a sales tax of 10% is levied on all sales which is payable to the local government by the end of each month, therefore MU8,000 is due to the local government. As such, the transaction price is MU88,000. Cheap Autos Ltd. sells a second-hand car to Sue a university student. Sue will be paying for the car in instalments which provides Sue with a significant benefit of financing. IFRS 15s transaction price does not take into account whether the sale is financed or not, because financing is within the scope of IFRS 9 Financial Instruments. Fizz Pop Ltd. contracts to sell juice to Pick n Save, a grocery store. In order to have its juice displayed prominently at check-out points and at eye level on juice aisle shelves Fizz Pop Ltd. contracts to make an upfront payment of MU5 million to Pick n Save. Fizz Pop Ltd. must account for the MU5 million as a reduction in revenue.

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