Suppose a customer buys an an iPhone from Apple for $500 on January 1, 2010. The cost of the iPhone to

Apple is $350. Assume that the customer is entitled to upgrades over the next two years. Use the following

financial statement effects template (FSET) to illustrate the financial statement impacts for Apple of the

customer's iPhone purchase on the date of the initial purchase and at the end of each of the two years

following the initial purchase under generally accepted accounting principles (GAAP).