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Holden Inc. sells software and a six-month technical support contract to a customer for a total of $180,000. Holden does not sell the same
Holden Inc. sells software and a six-month technical support contract to a customer for a total of $180,000. Holden does not sell the same software or tech support separately, however its closest competitor prices the same software on a stand-alone basis for $115,000. How many performance obligations does Holden have and how much revenue should it defer and recognize ratably over 6 months?
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
