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No Spacing He You are interviewing for an accounting consultant position at Mesmerizing Marketers (MM), marketing company that offers a variety of marketing offerings to its customers. Specifically, 1. MM will create a TV commercial for $1.M, build an app for scook, and build a Facebook page for $250K. These amounts represent MM's charges for these items when MM sells them separately to customers. The TV commercial, the app, and the Facebook page are not interrelated that is, each functions independently of the other offerings. . If a customer purchases all aforementioned items together, the total amount owed to MM is ent terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at midpoint, 25 percent at completion) 3. the app is downloaded sook times or more in the first month, there is a one-time bonus of 250k payable to MM. During the interview, MM'S CEO presented to you the following case: Stone, a customer, approaches MM with the hopes of reinventing its image to a younger customer base. Stone has a verbal agreement with MM that is based on MM's unsigned quote to Stone on November 30, 20X5, for one TV commercial, one app, and a Facebook page for total consideration of $1.5M and payment terms noted above. The agreement creates enforceable rights and obligations pursuant to MM's customary business proctices. None of these items can be redirected by MM to another customer. MM performed a credit check on Stone and has determined that Stone has the intention and ability to pay MM for fulfilling its portion of the contract. Stone is required to pay MM for performance completed to date // Stone cancels the contract with MM for reasons other than MM's failure to perform under the contract as promised. Stone makes a payment on November 30, 20X5, in the amount of S7SOK (SON of total consideration of $1.5M) pursuant to the agreement. From the date of the quote, it takes MMS months to develop and produce the TV commercial, two weeks to complete the Facebook page, and three months to complete a fully functioning app. MM does not think that the app will be downloaded SOOK times in the first month because Stone's customer bose does not quickly! accept newly developed technology. On the basis of its experience with similar technology. MM has determined that it takes over three months for Stone's users to begin to download its apps Questions According to the new revenue recognition model the second step is to identify the performance obligation(s) in the contract. Identify MM's performance distinct" obligation(s) from Stone's contract. You answer to be based on your interpretation of the relevant codification and relevant case fact. Question 3: According to the new revenue recognition model, the third step is to determine the contract transaction price. Please identify the contract price between MM and Stone. Make sure your answer is supported by relevant codification reference and case fact. Question 4: According to the new revenue recognition model, the fourth step is to allocate the contract transaction price to different performance obligations. Suppose the total contract price is $ 1.5M. (1) Use the following table to determine the amount of transaction price allocate to each performance obligation. Performance Obligation Stand-Alone Selling Price Percentage of Total Stand-Alone Selling Price Allocation of Transaction Price $1,500,000 (a) Please explain why your answer is consistent with relevant codification(s). Question 5: According to the new revenue recognition model, the fifth step is to recognize revenue when the entity satisfies the performance obligations. Please discuss how MM would recognize revenue with respect to each performance obligation? Make sure your answer is supported by relevant codification reference and case fact. No Spacing He You are interviewing for an accounting consultant position at Mesmerizing Marketers (MM), marketing company that offers a variety of marketing offerings to its customers. Specifically, 1. MM will create a TV commercial for $1.M, build an app for scook, and build a Facebook page for $250K. These amounts represent MM's charges for these items when MM sells them separately to customers. The TV commercial, the app, and the Facebook page are not interrelated that is, each functions independently of the other offerings. . If a customer purchases all aforementioned items together, the total amount owed to MM is ent terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at midpoint, 25 percent at completion) 3. the app is downloaded sook times or more in the first month, there is a one-time bonus of 250k payable to MM. During the interview, MM'S CEO presented to you the following case: Stone, a customer, approaches MM with the hopes of reinventing its image to a younger customer base. Stone has a verbal agreement with MM that is based on MM's unsigned quote to Stone on November 30, 20X5, for one TV commercial, one app, and a Facebook page for total consideration of $1.5M and payment terms noted above. The agreement creates enforceable rights and obligations pursuant to MM's customary business proctices. None of these items can be redirected by MM to another customer. MM performed a credit check on Stone and has determined that Stone has the intention and ability to pay MM for fulfilling its portion of the contract. Stone is required to pay MM for performance completed to date // Stone cancels the contract with MM for reasons other than MM's failure to perform under the contract as promised. Stone makes a payment on November 30, 20X5, in the amount of S7SOK (SON of total consideration of $1.5M) pursuant to the agreement. From the date of the quote, it takes MMS months to develop and produce the TV commercial, two weeks to complete the Facebook page, and three months to complete a fully functioning app. MM does not think that the app will be downloaded SOOK times in the first month because Stone's customer bose does not quickly! accept newly developed technology. On the basis of its experience with similar technology. MM has determined that it takes over three months for Stone's users to begin to download its apps Questions According to the new revenue recognition model the second step is to identify the performance obligation(s) in the contract. Identify MM's performance distinct" obligation(s) from Stone's contract. You answer to be based on your interpretation of the relevant codification and relevant case fact. Question 3: According to the new revenue recognition model, the third step is to determine the contract transaction price. Please identify the contract price between MM and Stone. Make sure your answer is supported by relevant codification reference and case fact. Question 4: According to the new revenue recognition model, the fourth step is to allocate the contract transaction price to different performance obligations. Suppose the total contract price is $ 1.5M. (1) Use the following table to determine the amount of transaction price allocate to each performance obligation. Performance Obligation Stand-Alone Selling Price Percentage of Total Stand-Alone Selling Price Allocation of Transaction Price $1,500,000 (a) Please explain why your answer is consistent with relevant codification(s). Question 5: According to the new revenue recognition model, the fifth step is to recognize revenue when the entity satisfies the performance obligations. Please discuss how MM would recognize revenue with respect to each performance obligation? Make sure your answer is supported by relevant codification reference and case fact

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