GHF Computer Systems Inc. maintains office equipment under contract. The contracts are for labour only; customers must reimburse GHF for parts. GHF’s rate schedule follows: 

GHF’s 2018 sales of maintenance agreements is set out below:

Required:

Assuming that sales occurred evenly throughout the year: 

a. What amount of revenue will GHF recognize for the year ended December 31, 2018? 

b. What amount of deferred revenue will GHF report as a current liability on December 31, 2018? 

c. What amount of deferred revenue will GHF report as a non-current liability on December 31, 2018?

Photocopiers Fax machines One year $240 180 Two years $420 320 Three years $600 450