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1. (b) On November 1, 2019, XYZ sold software and a six-month tech support contract to a customer for $80,000. XYZ sells the same software

1. (b) On November 1, 2019, XYZ sold software and a six-month tech support contract to a customer for $80,000. XYZ sells the same software without tech support for $60,000. It does not sell tech support separately. XYZ uses the residual method to allocate the transaction price. How much should we allocate to the software? How much should we allocate to the tech support?

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