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Atletico Cicero Incorporated_case study

What are the accounting issue(s) and the relevant components of the authoritative literature? The case focuses on a sales agreement with multiple deliverables. The critical issue is determining whether there are separate units of accounting in the sales agreement. In other words, should the multiple deliverables be accounted for as one unit of accounting or as two or more separate units of accounting? Guidelines that assist with evaluating sales transactions that involve multiple deliverables can be found in subtopic 605-25, ‘‘Revenue Recognition—Multiple-Element Arrangements,’’ in the Codification. Requirement 2: What are the separate units of accounting in the sales agreement between AOI and CMI? Use the authoritative literature to explain your answer. As the explanation below illustrates, the multiple deliverables sold…