Question: Accounting: A software company sells a license ( $ 2 0 , 0 0 0 ) , installation service ( $ 5 , 0 0

Accounting: A software company sells a license ($20,000), installation service ($5,000), and annual maintenance ($8,000) as a single bundled contract. Under ASC 606, the company estimates standalone selling prices as $22,000 for the software, $4,000 for installation, and $9,000 for maintenance. How should revenues be allocated to each component, and how much revenue is recognized in year 1 if only license delivery and installation occur, but maintenance is ongoing?
Accounting: A software company sells a license (

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