How do you caluclate and solve?
ADM Ltd. is a public company that manufactures and sells satellite systems and provides support services. ADM's customers can purchase satellites or support services separately, but the company also offers satellite systems that include training and support as a package. On October 1, 2020, First Web Ltd. purchased a satellite and support package from ADM. The contract is for $94,800,000 and includes the satellite and 10 years of support services once the satellite is delivered in orbit. The satellite that was purchased by First Web would normally sell for $93,328,800 and 10 years of support services would be valued at $11,771,200 purchased separately. ADM's management expects the satellite to be delivered in orbit by October 1, 2021. The support is expected to be provided evenly for 10 years after delivery of the satellite. The contract requires First Web to make a $16,400,000 payment to ADM within 30 days of signing the contract and then $31,000,000 on October 1, 2021, with the balance to be paid annually over 10 years once the satellite is delivered in orbit on October 1, 2021. First Web has secured financing to pay for the satellite system and SO ADM's management has no concerns related to collectability, (a 1) Assuming that ADM provides the goods and services as and when expected under the contract and First Web makes its payments as required, determine when and how much revenue ADM would be able to recognize in each of the first three fiscal years ending December 31 (2020 2021 2022) of the contract. (Round allocation percentage to 1 decimal place, e.g. 15.2% and final answers to decimal places, e.g. 125. If an answer is zero, please enter 0. Do not leave any helds blank.) Sales Revenue Service Revenue Revenue recognized in 2020 Revenue recognized in 2021 Revenue recognized in 2022 $ $ $ $ $ ADM Ltd. is a public company that manufactures and sells satellite systems and provides support services. ADM's customers can purchase satellites or support services separately, but the company also offers satellite systems that include training and support as a package. On October 1, 2020, First Web Ltd. purchased a satellite and support package from ADM. The contract is for $94,800,000 and includes the satellite and 10 years of support services once the satellite is delivered in orbit. The satellite that was purchased by First Web would normally sell for $93,328,800 and 10 years of support services would be valued at $11,771,200 purchased separately. ADM's management expects the satellite to be delivered in orbit by October 1, 2021. The support is expected to be provided evenly for 10 years after delivery of the satellite. The contract requires First Web to make a $16,400,000 payment to ADM within 30 days of signing the contract and then $31,000,000 on October 1, 2021, with the balance to be paid annually over 10 years once the satellite is delivered in orbit on October 1, 2021. First Web has secured financing to pay for the satellite system and SO ADM's management has no concerns related to collectability, (a 1) Assuming that ADM provides the goods and services as and when expected under the contract and First Web makes its payments as required, determine when and how much revenue ADM would be able to recognize in each of the first three fiscal years ending December 31 (2020 2021 2022) of the contract. (Round allocation percentage to 1 decimal place, e.g. 15.2% and final answers to decimal places, e.g. 125. If an answer is zero, please enter 0. Do not leave any helds blank.) Sales Revenue Service Revenue Revenue recognized in 2020 Revenue recognized in 2021 Revenue recognized in 2022 $ $ $ $ $
