Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes a free maintenance service for 12 months. The price of the specialized bike is $1000. When sold seperately, a maintenance contract is $200 and a comparable but non-specialized bike is $600. Which of the following is correct?

A) Neakanie will recognize $1000 of revenue at the end of 12 months.

B) Neakanie fulfulls its performance obligation at the time of delivery of the bike.

C) Neakanie will recognize $500 of of revenue at the date of sale and the remaining $500 at the end of 12 months.

D)Neakanie must allocate the purchase price based on the stand-alone selling prices of the bike and the service.