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Carel, a software vendor, sold software to a customer for $50,000. As part of the contract, the vendor agrees to provide free updates for 2

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Carel, a software vendor, sold software to a customer for $50,000. As part of the contract, the vendor agrees to provide free updates for 2 years. The software sells alone with no upgrades for $40,000, and the upgrades are valued at $5,000 per year. Based on vendor-specific objective evidence, how much revenue should Carel recognize when the initial software is delivered

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