medium · Financial Accounting revenue-recognition
A firm enters into a contract to sell a software license and three months of consulting services for a total package price of 120,000. The standalone selling price of the software is80,000 and the consulting services are $60,000.
Applying ASC 606, how much revenue should be allocated to the consulting services?
- $60,000
- $68,571
- $40,000
- $51,429
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