[Solved] Baldi Piano Manufactures Customized Pianos for Concert Halls

Question 249

Baldi Piano manufactures customized pianos for concert halls.On July 1,2016,Baldi signed a contract to deliver a concert piano for $150,000.Under the contract,Baldi is also obligated to provide a one-year maintenance service.If sold separately,the piano and the maintenance service would have cost $140,000 and $20,000,respectively.
Required: How much of the transaction price would be allocated to the piano and the maintenance service,assuming they are separate performance obligations? Show your work.

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