On July 15, 2021, CHS Inc. agreed to provide Lionbridge with a precision cutting system...
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On July 15, 2021, CHS Inc. agreed to provide Lionbridge with a precision cutting system for a price of $79,200. The contract included the following performance obligations:
Performance obligations:
Stand-alone selling price:
The precision cutter that fits into Lionbridges automated assembly line.
$51,000
CHS Inc.'s proprietary software modified to allow the cutting system to function in Lionbridges automated system.
$10,000
A one-year contract to calibrate the equipment and software on an as-needed basis.
$39,000
CHS Inc. delivered and installed the equipment and software on August 1, 2021, and the calibration service commenced on that date. Assume that the cutter, software and calibration service are all separate performance obligations. How much revenue will CHS Inc. recognize in 2021 for this contract?
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