When should Fassino's recognize revenue from selling the tires plus mounting, alignment, and rotation services?

a. At the time of initial installation, Fassino's performs its obligation to provide both tires and initial mounting and alignment services. Pete's should recognize revenue for the portion of the $480 selling price applicable to the sale of tires and installation services at the time of installation.
b. Fassino's should delay recognition of revenue for the portion of the $480 selling price applicable to the subsequent alignment and rotation services until it performs the required services.
c. Fassino's should delay recognition of revenue from selling the tires plus mounting, alignment, and rotation services until it performs all of the required services at the end of the three year period.
d. At the time of initial installation, Fassino's should recognize revenue for all of the $480 selling price applicable to the tires plus mounting, alignment, and rotation services.
e. Both choices a and b are correct.

E

Business

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