answer the assigment of revenue recognitionThe sales manager for BARTCO has just obtained a signed contract from Dark Start Manufacturing $($DS$)$ to

provide and perform computer integration services for surveillance equipment at a cost of $$10$ million,

and have everything operational within one year, at which time full payment is due. DS will not get control

of the video surveillance equipment until the integration is completed and BARTCO turns control of the

system over to DS$.$ Management expects to be able to have the system fully operational and available for

use by DS in the ${12}^{th}$ month of the contract.

BARTCO believes this system would also be valuable to DS$\text{'}$s competitors. The contract price of $$10$

million includes a five$-$year maintenance agreement that will commence after the installation is

completed. DS has a great credit rating and always pays its bills. BARTCO's sales manager is very pleased

because he will receive a $2\%$ bonus based on the gross sales contract price, and it is payable upon receipt

of a signed contract.

BARTCO maintains a marketing group to work on contract proposals. The total annual salaries for the

marketing group are $$400,000.$ On average, the marketing group works on $20$ proposals each year. This

contract is expected to have a $15\%$ to $20\%$ margin.

Requirements:

Review ASC $606-10-25-1.$ Perform step one of the revenue recognition model and identify the

contract$($s$)$ with the customer. By reference to the applicable accounting literature, provide a

detailed analysis to support your conclusion.

$=>$ Review ASC $606-10-25-14$ through $21.$ Perform step two of the revenue recognition model and

identify the performance obligation$($s$)$ in the contract$($s$).$ By reference to the applicable accounting

literature, provide a detailed analysis to support your conclusion.

Review ASC $340-40-25-1$ through $3$ on deferring costs. Record any required journal entries as of the

date of receiving the signed contract.the requirements of part $1$