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Norford Truck Company Sells Tractors to Area Farmers

Question 44

Essay

Norford Truck Company sells tractors to area farmers. The price of each tractor includes GPS service for 12 months The GPS service is regularly sold on a standalone basis by Norford for a monthly fee. After the 12-month period, the consumer can renew the service on a fee basis. How many performance obligations does Norford have?

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It appears that Norford has two performa...

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