Wavelength,a Cellular Phone Company,conducts a Promotion in Which New Customers

Wavelength,a cellular phone company,conducts a promotion in which new customers who sign a two-year contract receive a free phone.The contract requires the customer to pay a cancellation fee of $250 if the customer cancels the contract.Wavelength charges a one-time activation fee of $60 and a monthly fee of $42 for ongoing service.The monthly fee is the same regardless of whether a free phone is provided.The phone costs Wavelength $105,and Wavelength sells the phone separately for $125.Wavelength is not required to refund any portion of the fees paid for any reason.The customer has no obligation to Wavelength if phone service is not provided.Wavelength is a profitable business and has no reason to believe that the two-year service requirement will not be met.
Required:
1.Are the phone and the phone service (airtime)separate deliverables under this agreement?
2.What is the amount of revenue to be recognized upon signing of the agreement and delivery of the phone to the customer?