On December 1, 2020, Talk Inc. sells a basic cell phone and six-month airtime package to a customer for $80 per month for six months, starting on that date. The standalone value of the cell phone is $400, and airtime is $30 per month. The cell phone is the customers to keep. Talk has a December 31st year end.

Required: When would Talk Inc. recognize the revenue on this contract? How much revenue would be recognized and when? (Hint: In your response you may ignore any financing income.) Show all CALCULATIONS. Clearly LABEL your answers.