[Solved] Sullivan Should Recognize Revenue for the Two Parts of the Arrangement

Question 238
Multiple Choice

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.

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