Able sells a piece of equipment to Smythe for $1,800 on August 1. The equipment cost $1000. The equipment is picked up by Smythe on August 10. How many performance obligations are included in this transaction?

Question

Quizplus · Accepted Answer

The transaction involves a single performance obligation, which is the delivery of the equipment to Smythe. The sale and delivery of the equipment are considered one performance obligation under revenue recognition principles.

Able Sells a Piece of Equipment to Smythe for $1,800