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The Fastbank Motorcycle Service Company Wins a $10 Million Bid

Question 47

Multiple Choice

The Fastbank Motorcycle Service Company wins a $10 million bid to provide the repair services for a recall on a popular brand of motorcycles.No money is exchanged.The repair services are expected to be performed early next year.Which of the steps of the five-step model for revenue recognition is not yet complete?


A) Determine the transaction price.
B) Identify the seller's performance obligation(s) .
C) Identify the contract.
D) Recognize revenue when (or as) each performance obligation is satisfied.

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