Sullivan should recognize revenue for the two parts of the arrangement as follows:
A) Recognize the entire $500 when the customer pays cash to buy the package.
B) Recognize the portion of the $500 attributable to the software program when the customer pays cash to buy the package;defer the portion attributable to technical support and recognize over the support period.
C) Defer the entire $500 and recognize over the support period.
D) Recognize the entire $500 upon conclusion of the support period.
Correct Answer:
Verified
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