If the sum of standalone selling prices is greater than the transaction price,then any discount to the separate performance obligations should be allocated based on relative ________.
A)market values
B)standalone prices
C)book values
D)net present values

Question

Quizplus · Accepted Answer

The discount should be allocated based on relative standalone prices, as this is the basis for determining the allocation of the transaction price to each separate performance obligation. The market values, book values, and net present values are not relevant for this allocation.

If the Sum of Standalone Selling Prices Is Greater Than