Question $12$

$3$ pts

Firebirds Inc. provides customers with hardware and services. The services cover a fiveyear period starting on the contract date. The company enters a contract with a customer on June $1,2021.$ The customer purchases the hardware and services for a flat fee of $$6,500.$ The fair value of the hardware is $$6,000($cost of $$4,500)$ and the price of the services is estimated to have a fair value of $$1,000.$ The customer pays $$6,500$ in cash and the hardware is delivered on June $1,2021.$ What amount of revenue does the company recognize on June $1,2021?$

$$929$

$$5,571$

$$6,000$

$$6,500$

None of the other answers