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108 Chandra, Dana. and Marcinko ii. TSA sold the future payment stream from this license arrangement for $65,000 on January 1, 2000 on a non-

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108 Chandra, Dana. and Marcinko ii. TSA sold the future payment stream from this license arrangement for $65,000 on January 1, 2000 on a non- recourse basis. Prepare the journal entry to record this transaction assuming that the conditions for a sale are met. . While reviewing this contract in 2003, TSA determined that monthly license fees for this contract did not meet the \"xed and determinable\" provision of SOP 97-2 in January 1999. Prepare the journal entries for TSA on January 1, 1999 and January 31, 1999 under this assumption. Explain your answer referring to ABC 985-605-2535. . Now assume that the license pertains to software for nancial transactions via the intemet that is frequently updated because it is a potential target for hackers. The updates are essential in maintaining the utility of the software and are provided free of cost to the customer under the terms of the contract. Prepare the journal entries for TSA on January 1, 1999 and January 31, 1999 under this assumption. Explain your answer referring to ASC 150610-55 (paras. 58, 59, 60, and 62) and ASC 606-10-55-140 (paras. D and F}. . Identify the total revenue recognized in each situation (a through c) above and how it is classied (i.e., under ILF, MLF, and Interest RevenuefExpense). How much revenue is booked in 1999 in each case? Provide reasons for differences in the timing of revenue recognition in the three situations, referring to relevant accounting standards

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