Tablet Tailors sells tablet PCs combined with Internet service (Tablet Bundle A) that permits the tablet to connect to the Internet anywhere (set up a Wi-Fi hot spot). The price for the tablet and a 4-year Internet connection service contract is $570. The standalone selling price of the tablet is $285 (cost to Tablet Tailors $174). Tablet Tailors sells the Internet access service independently for an upfront payment of $10,000, plus $79 payments at the beginning of years 24 of the contract. With an imputed interest rate of 7%, the standalone value of the service is $307. On January 2, 2014, Tablet Tailors signed 100 contracts, receiving a total of $36,268 in cash (full payment of $570 each in cash, less the present value of the note for the future service plan payments), delivered tablets, and started service for 100 tablet packages.