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A company sells equipment and service contracts. When purchased separately, the equipment costs $ 4 , 3 6 5 and a four - year service
A company sells equipment and service contracts. When purchased separately, the equipment costs $ and a fouryear service contract costs $ When purchased together, the equipment cost is discounted of the cost if purchased separately. They always deliver equipment the day it is sold.
How much revenue does the firm recognize from the first year of the service contract when it is sold together with equipment?
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