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On July 15,2024, Ortiz & Company signed a contract to provide EverFresh Bakery with an...

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Accounting

On July 15,2024, Ortiz & Company signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $82,800. The system included finely tuned scales that fit into EverFreshs automated assembly line, Ortizs proprietary software modified to allow the weighing system to function in EverFreshs automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. If Ortiz was to provide these goods or services separately, it would charge $54,000 for the scales, $10,000 for the software, and $36,000 for the calibration contract. Ortiz delivered and installed the equipment and software on August 1,2024, and the calibration service commenced on that date.
Assume that the scales, software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2024 for this contract?
Note: Do not round intermediate calculations.
Multiple Choice
$0
$65,412
$52,992
$82,800

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