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Eugene CoHas Inventory It Purchased for $6,000

Question 195

Multiple Choice

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

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