Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a car manufacturer provides a service type warrant

A car manufacturer provides a service type warranty for five years on sales of new...

70.2K

Verified Solution

Question

Accounting

image

A car manufacturer provides a service type warranty for five years on sales of new vehicles. The following table provides information relating to two car models the company produces and sells: E (Click the icon to view the table.) Required Using the relative stand-alone selling prices, compute the revenue that would be (i) recognized upon delivery of the vehicle and (ii) deferred and recognized over five years for each of the car models. Begin by computing the revenue that would be recognized upon delivery of the vehicle and deferred and recognized over five years for Nova. (Round your answers to the nearest dollar. For percentages, round your answers to three decimal places, X.XXX %.) Data Table Component Component price as percentage of total x Actual Nova price sale price = Allocation Car: immediate recognition % % Car model Warranty: defer and amortize Estimated price Estimated price Sale price of car of warranty 15,500 $ 14,200 $ 1,510 18,200 14,700 1,850 Nova Total % Pinto Next, calculate the revenue that would be recognized upon delivery of the vehicle and deferred and recognized over five years answers to three decimal places, X.XXX %.) Print Done Enter any number in the edit fields and then continue to the next

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students