ABC Inc.is a large manufacturer of machines.XYZ ltd,a major customer of ABC Inc.,has placed an order for a special machine for which it has given a deposit of $112,500 to ABC Inc.The parties have agreed on a price of $150,000 for the machine.As per the terms of the sales agreement,it is a FOB(free-on -board) contract and the title passes to the buyer when goods are loaded on to the ship at the port.when should the revenue be recognised by ABC Inc.
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