Jeff's Helicopters (Jeff's) sells new helicopters with a five-year service contract stipulating that a maintenance...
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Jeff's Helicopters (Jeff's) sells new helicopters with a five-year service contract stipulating that a maintenance technician will come to the customer's hangar once a month during the contract to maintain the helicopter. Jeff's sold a helicopter to a customer on February 1 and delivered it that same day. The customer paid for the helicopter and maintenance contract by cheque on the date of sale. The helicopter had a price of $2,430,000, and the maintenance contract had a value of $560,000 for a total price paid by the customer of $2,990,000. Jeff's has an October 31 year end and reports under ASPE. What amount of revenue should Jeff's recognize for this transaction at its year end in the year of the sale?
Option: A. $2,430,000 B. $2,514,000 C.$2,542,000 D.$2,990,000
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