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2. Johnnie Walker sells a product that involves two separate performance obligations: the WhiskyRight distillery kit...

2. Johnnie Walker sells a product that involves two separate performance obligations: the WhiskyRight distillery kit and the WhiskyCoach teaching software. WhiskyRight has a stand-alone selling price of $150. Johnnie Walkersells both the WhiskyRight and the WhiskyCoach as a package deal for $200.The WhiskyCoach software is not sold separately. Using the residual approach, how much of the package deal selling price would get allocated to the WhiskyCoach teaching software?

A)$80.00

B) $50.00

C) $90.00

D)$97.50

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Answer #1

Package deal selling price allocated to teaching software

= 200 - 150

= 50

Option B is the answer

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