Financial treatment for dropping off medical equipment?

Personal understanding. For this type of contract, in general, if there is a significant difference between the average price of the consumables after the equipment is placed and the non-placement of the equipment, then it is clearly a mixed sales practice, and the equipment and consumables revenue are recognized separately under the well-established recognition of multi-eliment revenue under USGAAP. If the difference is not significant, then the cost of the equipment is one of three scenarios: 1) payments are made after a certain number of years have been established; 2) no payments are required; and 3) optional payments are made. In the first case, if the obligation is irrevocable after the contract is signed, then according to the revenue recognition, surely the equipment revenue should be recognized in the current period according to the present value; in the second case, surely it should be recognized as a cost or an expense, and then the question is how to apportion it over the term. Such as Bohui, although passed the meeting, but there are obvious strange places, 1) why is it 55 open? If there is no subsequent revenue, i.e. cash inflow, recognized, then it should not be presented as an asset, otherwise, it should clearly be impaired, then it must be expensed. 2) Is the reason for leaving 50% because under past experience, the company may recover 50% of the cost through other means? If so, wouldn't a separate portion of revenue need to be recognized? But, obviously a negative gross profit is not reasonable, and then you need to reapportion the revenue for the consumables. The third, then it depends on the terms of the specific contract, under what circumstances, signs of revenue recognition, especially this may be based on the emergence of a phenomenon as a criterion, then consider the treatment of reference to the milestone in GAAP, after the emergence of signs and then recognize revenue. If it never occurs, it will be presented as a cost or expense alone.