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Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020....

Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.

Shaw now prepares a “mid-year” income statement for the first six months of 2020, ending on June 30, 2020 (recall that instillation was completed June 18, 2020). How much revenue should Shaw have recognized at this point related to its sale to Ricard?

Sales Revenue ______________

Service Revenue_____________

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