I need to compose a memo based on all the attached file.

Answer the both questions with specific description and please provide me appropriate the ASC codification.

Golden Gate University Accounting 300 Summer 2016 Final 300 Points INSTRUCTIONS: Final is due on Saturday August 13, 2016 by 11:59pm. Significant points will be deducted for being late. PROBLEM - REVENUE RECOGNITION You are the Manager of Technical Accounting for Parker Co (Parker), an SEC registrant. Parker provides highly specialized electronic chip machinery. Parker provides installation and testing services as part of the sale of the equipment to ensure that the machinery meets the customer's specifications. Parker also provides a five-year maintenance plan whereby it will provide telephone support and repair services at no incremental cost. Customer A has purchased the machinery and maintenance plan include. Some additional back-ground information is as follows: The cost of the total package is $1.3M. Parker does not sell the machinery or the maintenance program on a stand-alone basis. Parker estimates that a customer could resell the machinery to a third party. Payment terms: $900,000 upon the date of sale. $80,000 payable each year at the beginning of the year for the maintenance services. Duncan Co. provides installation services for a similar product and charges $100,000. No competitor provides a product similar enough for Parker to make an estimate of the standalone value of its product, but for those competitors who do provide a similar service, they earn a margin of 25%, e.g. if sale price is $1M, then cost if $750,00. Parker's cost to product the machinery is $675,000. If Parker fails to provide the maintenance services, Customer has no obligation to pay additional amounts and may seek a pro rata refund for the maintenance fee paid, e.g. if Parker has provided one quarter of the year's service prior to no longer providing services, the Customer would be entitled to $60,000 refund.. Assume that it may take Parker a couple of weeks to complete the installation, which may cross a fiscal quarter. This is an important issue for Parker in terms of timing of revenue recognition. Required: Discuss the issues and conclusions for Parker's revenue recognition for this contract under the existing GAAP guidance. Discussion should include identification of the deliverables and units of accounting; allocation of revenue to the units of accounting; and appropriate revenue recognition of the deliverables. Next, discuss the impact of the new GAAP guidance in ASC 606. What conclusions remain the same? What conclusions change? Please make clear reference to the new guidance paragraphs when developing your discussion. Feel free to utilize any of the Big 4's summaries and analyses of the new guidance. 200 Points