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Business, 29.10.2019 22:31 carrietaylor234

Telecom co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. to induce customers, telecom co. provides a free phone. telecom co. normally sells the phone on a stand-alone basis for $200. telecom co. also charges the customer a one-time activation fee of $35. which of the following is true? a. the free phone constitutes a marketing expense.
b. the activation fee is a separate performance obligation.
c. there are two distinct performance obligations: the wireless service and the phone.
d. there are two distinct performance obligations: the voice service and the data service.

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