Summerhill Construction builds luxury houses in remote areas. On June 1, 2018, 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, 2018, 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