On January 1, 2020, Mountain Company enters into a 3-year contract with a customer for an unlimited talk & 10 GB data wireless plan for $80 per month. The contract includes a smartphone for which the customer pays $400. Smartphone can also be purchased at $750 separately and also unlimited talk & 10 GB internet services can also be purchased separately for $80 per month. (Consider that Mountain Company receives cash on January 1, 2020 when smartphone is owned by the customer.) Please answer the following questions.

a. Calculate the allocated transaction price for the smartphone, and the unlimited plan depending on the assumption that the allocation is made based on stand-alone selling prices.

b. Record the journal entry necessary for Mountain Companys sale of a 3-year contract on January 1, 2020.

c. Record the monthly journal entry for the relevant revenue recognition per month.

d. Explain which amount is recognized at a point in time and which amount is recognized overtime and why?