Cullumber Ltd. is a public company that manufactures and sells heavy equipment such as cranes...

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Accounting

Cullumber Ltd. is a public company that manufactures and sells heavy equipment such as cranes and provides service contracts for the maintenance of the equipment. Cullumbers customers can purchase a crane or service contract separately, but the company also offers a crane with a service contract as a package. On June 1,2024, Crane Ltd. purchased a crane and service package from Cullumber. The contract is for $389,000 and includes the crane and 3 years of maintenance services once the crane is delivered. The crane that was purchased by Crane would normally sell for $337,840 and 3 years of maintenance services would be valued at $74,160 if purchased separately. The crane had a manufacturing cost of $229,000. Cullumbers management expects the crane to be delivered by November 1,2024. The maintenance services are expected to be provided evenly for 3 years after the delivery of the crane. The contract requires Crane to make a $156,490 payment to Cullumber within 30 days of signing the contract and then $156,490 on delivery with the balance to be paid annually over 3 years once the crane is delivered on November 1,2024, starting November 1,2025. Crane has secured financing to pay for the crane system and so Cullumbers management has no concerns related to collectibility.
Assuming that Cullumber provides the goods and services as and when expected under the contract and Crane makes its payments as required, determine when and how much revenue Cullumber would be able to recognize in each of the first four fiscal years ending December 31(2024,2025,2026,2027) of the contract. (Do not round intermediate calculations. Round allocation percentage to 2 decimal places, e.g.15.25% and final answers to 0 decimal places, e.g.125)

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