Pale Ltd sells a trailer to a customer for R$121000$ which is payable $24$ months after delivery. The customer obtains control of the product at contract inception on $1$ January $2023.$

The cash$-$selling price of the trailer is R$100000,$ which represents the amount that the customer would pay upon delivery for the same product sold under otherwise identical terms and conditions as at contract inception. Pale Ltd$$s cost of the trailer is R$80000.$ An interest rate of $10\%$ per annum is applicable to the contract and is a significant financing component.

REQUIRED:

Question $1$:

Which one of the following statements is correct based on the information provided above?

$1.$

Revenue is recognized at an amount of R$100000$ on $31$ December $2024$

$2.$

Revenue is recognized at an amount of R$121000$ at the inception of the contract.

$3.$

Revenue is recognized at an amount of R$100000$ at the inception of the contract

$4.$

Revenue is recognized at an amount of R$121000$ on $31$ December $2024$