Case 3-Your company sells a product bundle that includes software and a 3 year service contract( this is not a warranty) for $100,000, The company installed the software on July 1, 2020, and the client paid $50,000 cash. The balance is due on December 31, 2020. What if: (a) the performance obligations are interdependent and cannot be separated out or sold separately. (b) the performance obligations are not interdependent ( The service contract is sold separately for $25,000 and the software for $100,000.)

1. determine when the seller should recognize revenue and where it would be on the income statement and balance sheet

2. Explain your answer using GAAP revenue recognition guidelines.