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PayPal Holdings, Inc. sells software to a customer for $200,000. The customer pays $40,000 upfront and agrees to pay the remaining amount in five annual

PayPal Holdings, Inc. sells software to a customer for $200,000. The customer pays $40,000 upfront and agrees to pay the remaining amount in five annual installments, including interest. Assuming an appropriate interest rate, calculate the revenue recognized by PayPal Holdings in the first year using the installment sales method.

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