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) None of these.
Correct Answer:
Verified
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