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On November 1 2019 Gerakos Corporation sold software and a six-month technical support contract to a customer for

On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It sells technical support for $30,000. Gerakos allocates the transaction price based on relative stand-alone values. Required: What amount of revenue does Gerakos recognize in 2019 and in 2020?Software = 80000*60000/90000 = 53,333 Technical support = 80000*30000/90000= 26667 The pending technical support is for four months 26,667*4/6 = 17778

Apr 21 2020 View more View Less

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