Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for $12$ months. The price of the specialized bike is $$700.$ When sold separately, a maintenance contract is $$200,$ and a comparable but non$-$specialized bike is $$600.$ Which of the following is correct?

Multiple Choice

Neakanie fulfills its performance obligation at the time of delivery of the bike.

Neakanie will recognize $$700$ of revenue at the end of $12$ months.

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

Neakanie will recognize $$350$ of revenue at the date of sale and the remaining $$350$ at the end of $12$ months.