Summerhill Construction builds luxury houses in remote areas.On June 1,2016,the company signed a contract to build a house in an undeveloped section of a mountainside,and received $2 million in advance for the job.To complete the project,the company must construct a pathway leading to the building lot,clear a large hillside,and construct a wooden house.Normally,the company would charge $400,000,$1,400,000,and $500,000,respectively,for each of these tasks if done separately.
Required: Given the information above,how many performance obligations are included in this contract?

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The Answer of Summerhill Construction builds luxury houses in remote areas.On June 1,2016,the company signed a contract to build a house in an undeveloped section of a mountainside,and received $2 million in advance for the job.To complete the project,the company must construct a pathway leading to the building lot,clear a large hillside,and construct a wooden house.Normally,the company would charge $400,000,$1,400,000,and $500,000,respectively,for each of these tasks if done separately.
Required: Given the information above,how many performance obligations are included in this contract?

Summerhill Construction Builds Luxury Houses in Remote Areas