Question

Allocating a Transaction Price Seven Flags Park offers a promotion for free parking to customers who purchase a one day pass to enjoy thrill rides at its park plus two meal vouchers for a total of $75. Seven Flags sells each of the contract promises separately during the same time frame for the following standalone prices: Day pass = $45, Parking = $20, and two meal vouchers = $30. Compute the allocated transaction price of the day, two meals, and parking for Seven Flags assuming the sale of 500 promotional packages on July 15, 2020. *Round each allocated transaction price to the nearest whole dollar. Transactions Standalone Selling Total Allocated Performance Selling Price Transaction Price Obligations as Stated (rounded) Day passes 45 $ 95 $ 18,750 Two meals 11,842 Parking 0 20 20+ 95 7,899 75 $ 38,487 Price Price Ratio $ 45 $ 45 - $ 30 30 30 95 $ 95 $

Answer 1

Performance Obligations	Transactions Price as Stated	Standalone Selling Price	Selling Price Ratio	Total Allocated Transaction Price (rounded)
Day passes	$ 45	$ 45	45	÷	95	$ 17,763 ( 500 x $ 75 x ( 45 /95 )
Two meals	$ 30	$ 30	30	÷	95	$ 11,842 ( 500 x $ 75 x ( 30 /95 )
Parking	$ 0	$ 20	20	÷	95	$ 7,895 ( 500 x $ 75 x ( 20 /95 )
	$ 75	$ 95				$ 37,500