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

Question:

On November 1, 2019, Gerakos 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 does not sell technical support separately. Gerakos uses the residual method to allocate the transaction price.
Required:
What amount of revenue does Gerakos recognize in 2019 and in 2020?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...