Question: A software company enters into a $ 2 5 0 , 0 0 0 contract with a customer to transfer a software lincense, perform installation

A software company enters into a $

250, 000

contract with a customer to transfer a software lincense, perform installation service, and provide technical support for a three

-

year period. The entity sells the license, installation service, and technical support seperately. The installation service and technical suppprt could be performed by other entities and the software remains functional in the absence of these services. The contract price must be paid on installation of this software, which is planned for march

1,

year

1 .

How should the software company recognize revenue for these transactions?

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