Question 1 - Five-Step Revenue Recognition In this question, we will examine financial information from HP Inc. (as of October 31, 2021) and Dell Technologies Inc. (as of January 29, 2021). Find their most recent financial statements. (1) The two companies describe their revenue recognition policies according to the five steps of revenue recognition we learned in class. Find those descriptions and read them. For the question, write down which note includes that description from which page. (2) The two companies largely have two categories of performance obligations: hardware (products) vs. services. Why do they treat them as distinct performance obligations? The questions below consider a hypothetical sales transaction HP made on February 1, 2021. In that transaction, HP sold a computer for $1,200. The hardware is delivered that day, but services (e.g., maintenance) are delivered over the next 24 months. The standalone selling prices of the two components are $1,120 (hardware) and $480 (services). HP uses straight-line recognition for services revenue. Beware that HPs fiscal year ends on October 31, not December 31. (3) How much revenue should HP recognize for the fiscal year ended on October 31, 2021? How much deferred revenue should HP have as of October 31, 2021? How much of that deferred revenue is current? (4) Additional to the given information, suppose that HP also provides 1-year standard warranty services free of charge to the customer. The estimated cost of such warranty services is $400. Does this information change your answer to (3)? If so, how? If not, why? (5) Additional to the given information, and independent from (4), suppose that HP also sold a 3-year extended warranty for $400 to the customer. Does this information change your answer to (3)? If so, how? If not, why