The following information applies to two questions below. A company enters into a contract to provide three different products to a customer for a total transaction price of $325,000. Each product is a separate performance obligation. Product A is delivered at the time the sale takes place; Product B and Product C represent various types of service and customer support provided to the customer during the 24-month period after the sale is completed. Because the company sells only two of the three products on an individual basis, the company must estimate the standalone selling prices. Information about these three products is provided in the following table:

Product	Standalone Selling Price	Market Competitor Price	Estimated Costs
A	$87,500	$66,500	$60,000
B	$150,000	$156,000	$125,000
C	N/A	$100,000	$65,000
Totals		$322,500	$250,000

The company uses the expected-cost-plus-a-margin approach to determine the estimated standalone selling prices of Products A, B and C.

What amount of the transaction price is allocated to Product C?

A.

$100,782

B.

$87,500

C.

$84,500

D.

$78,000

How much Unearned Revenue should the company record at the time the sale is made, assuming the customer paid the full amount in cash?

A. $247,000

B. $237,500

C. $0.

D.$234,500