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givi [52]
3 years ago
15

On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Ger

akos sells the same software without technical support for $60,000. It does not sell technical support separately. Gerakos uses the residual method to allocate the transaction price.
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

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

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Explanation:

Conditions

  • The  cotton country of lancaster, california has owned his home for ten years
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a.    hence,

the proportion of the house insured = \frac{InsuranceAmount}{PriceOfThe Home} \times 100%

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Amount covered by the policy in dollars

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b

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A firm's objective is to have a prolonged competitive advantage when a resource or capability gives the firm an advantage over competitors for an extended period of time. The industry will determine how long a company can preserve a competitive advantage.

If a business can maintain a competitive edge for a year in a fast-moving field like information technology or quick fashion, it may be quite happy. In an industry with less frequent changes, such as feminine hygiene, a persistent competitive advantage may remain considerably longer.

A sustainable competitive edge cannot be maintained by any company indefinitely. The competition is constantly working to improve its own competitive edge.

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brainly.com/question/15095207

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