Eugene Co. has inventory it purchased for $6,000. It sells the inventory to a customer for $10,000, including installation. Installation sold separately costs $1,000 and the inventory sold separately costs $10,000. What amount of Service Revenue is recognized by Eugene for installation once it has been completed?

A. $1,000.
B. $909.
C. $10,000.
D. $0, all the revenue is recorded as Sales Revenue since the installation was included in the contract.


Answer: B

Business

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