1. One of the most profitable products of Apple is the iPhone. When Apple sells an iPhone, the buyer gets a phone, together with the right to free software upgrades. Discuss when Apple should recognize revenue related to the iPhone along with any unique issues the company may face in the recognition of revenue and expenses.

1. On January 1,2019,an entity enters into a one-year fixed price contract with a customer to analyze the customer's historical sale trends. The entity promises to share its finding with the customer each month and to prove the customer with a final report at the end of the contract. The customer promises to pay $10,000 per month. The customer can change the specification of its requirements throughout the contract and has the right to obtain any analysis prepared by the entity. Discuss when the company should recognize revenue along with any unique issues it may face in the recognition of expenses.