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GoWeb IT Inc. is a public company that manufactures and sells IT systems and also provides IT training and support. GoWeb's customers can purchase IT
GoWeb IT Inc. is a public company that manufactures and sells IT systems and also provides IT training and support. GoWeb's customers can purchase IT system hardware or support services separately, but the company also offers hardware and support services as a package. On June Western Power Ltd one of GoWeb's customers, purchased an equipment and support package. The contract with Western is for $ and includes hardware and three years of support services. The hardware that was purchased would normally sell for $ and support services would be valued at $ if purchased separately. The hardware cost GoWeb $ and was delivered on June GoWeb's management expects that about half of the support services will be provided in July as the new hardware is installed. The balance of the support is expected to be provided evenly over the remainder of the contract. The contract also calls for Western to make a $ payment to GoWeb within days of signing the contract and then $ on January and Western is a successful company and GoWeb's management has no concerns about collectibility.
Assuming that GoWeb provides the goods and services as expected under the contract and Western makes its payments as required, determine when and how much revenue GoWeb would be able to recognize in each year of the contract. Round allocation percentage to decimal place, eg and final answers to decimal places, eg
tableRevenue recognized from sales,$$$Revenue recognized from service,,,,,,
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