Answer:
The question requirement relates to the amount of revenue to be recognized in year 2019 and 2020 respectively.
2019 Revenue is $66,667
2020 Revenue $13,333
Explanation:
The total price of $80,000 is split into $60,000 which is standalone price of the software and the balance relates of $20,000($80,000-$60,000) relates to technical support.
It is important to note that the selling price of software of $60,000 is due for recognition as revenue, while technical support fee of $20000 should be recognized on a progress basis,for each month the technical support has been rendered.
2019 Revenue
Software $60,000
Technical support($20000*2/6) $6,667
Total $66,667
2020 Revenue
($80,000-$66,667) $13,333
