Question: Chapman Software, Inc. develops and sells educational software. The Company sells software licenses together with customer support, software upgrades and user training. The customer support

Chapman Software, Inc. develops and sells educational software. The Company sells software licenses together with customer support, software upgrades and user training. The customer support and software upgrades are provided for one year after the license sale and the user training is provided for 2 years after the license sale. The Company sells its licenses and services in a "bundle" for one sales price of $170,000. the Company estimates the stand-alone selling price ("SSP") for each of these would be as follows:

Software license $ 157,500

Customer support for one year $ 29,250

Software upgrades for one year $ 24,750

User training for two years $ 13,500

a. If Chapman Software, Inc. sells a bundle for $170,000 on December 31, 2022, how much revenue should be recognized for each performance obligation in:

2022?

2023?

2024?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Smart Software, Inc. develops and sells accounting software. The Company sells software licenses together with software upgrades, customer support and user training. Software upgrades are available...

Financial Statement analysis - Homework case number 4. Accounting for Software Revenue Recognition Is Computer Associates Being Too Aggressive? Annual Revenues at Computer Associates (CA) dropped...

"2. Revenue Recognition for Software (25 points) a. A software vendor sold $300,000 software to a customer. The price includes the software (no addition development or modification needed), the...

page 71 Problem 4 Using the client?s financial statements and notes to the financial statements, determine what issues relating to GAAP to which the predecessor auditor may be referring. Ensure you...

Assignment 3: Attribute sampling problems 1 and 2. Problem 3-Probability proportionate to size problem Problem 4-variable sampling problems. Page 74-79 ABC, INC. A Comprehensive Decision Based Case,...

According to the Apple Inc. 2017 Annual Report, answer the following questions: The company 2017 net income is higher than the net income in 2016, Why did net income increase? What effective income...

Good afternoon, I need to answer the questionnaire "GENERAL BUSINESS RISK ASSESSMENT QUESTIONNAIRE" on section 3 of the case. Thank you ABC, INC. A Comprehensive Decision Based Case, 4th Edition,...

What changes in methods, testing, or acceptance of the engagement would any of the following have for you: 1) Significant global operations including 3 rd world countries 2) Significant new...

Good afternoon, I need to answer the questionnaire "GENERAL BUSINESS RISK ASSESSMENT QUESTIONNAIRE" on section 3 of the case. Thank you ABC, INC. A Comprehensive Decision Based Case, 4th Edition,...

The membrane of the axon of a nerve cell is a thin cylindrical shell of radius r = 105 m, length L = 0.1 m, and thickness d = 108 m. The membrane has a positive charge on one side and a negative...

A job cost sheet of Nilson Company is given below. Instructions(a) Answer the following questions.(1) What are the source documents for direct materials, direct labor, and manufacturing overhead...

According to the "Spot - Futures Parity", the Spot Price ( S 0 ) will always be higher than the Futures Price ( F 0 ) . Question 2 options: TrueFalse

You deposit $10,000 into an account now. The interest rate is 8% compounded semiannually. How much money is in your account one year from now? Three year from now? What is the EAR? Exercise #5: The...