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example number four on january 1st anderson go enters into a contract with tanner co for sale of an excavator for three lakh fifty thousand dollars guys im going very slow so anderson is entering into a contract with tanner for sale of an excavator for three lakh fifty thousand dollars so who have entered into contract guys anderson who is selling it anderson whom is selling it to tanner for how much three lakh fifty thousand what is this selling excavator the contract includes a call option that gives anderson the right to repurchase the excavator for three lakh eighty five thousand 000 on or before december 31st now guys the problem here is is there a condition attached to it straight away in the second line hes telling that there is an option that he can repurchase it again also normally you should be able to recognize revenue only when there is no conditions attached to it so what is going on here she is selling for 350 at the end of the year is purchasing it back again does it l