.___..__.._.. ._ __. [__.___.. . .____..__. "If _ ..o __. _I'__ ..__ ..__ __._. ..._...__.._..__ __. -____ __. _ surveillance systems. Digital Eyes has promised to have the system fully operational within one year, at which time full payment is due. After payment, Kl will get full control of the equipment. Digital Eyes believes this system would also be valuable to Kl's competitors. Kl has a great credit rating and always pays its bills. The sales manager for Digital Eyes will receive a 2% bonus based on the gross sales contract price, and the bonus is payable upon receipt of a signed contract. Digital Eyes maintains a marketing group to work on contract proposals. The total annual salaries for the marketing group are $400,000. On average, the marketing group works on 20 proposals each year. This contract is expected to have a 15% to 20% margin. Requirements: 0 Perform step one of the revenue recognition model in ASC 606 and identify the contract(s) with the customer. Provide a detailed analysis using references the applicable accounting literature to support your conclusion. 0 Perform step two of the revenue recognition model in ASC 606 and identify the performance obligation(s) in the contract(s). Provide a detailed analysis using references the applicable accounting literature to support your conclusion. 0 Evaluate the treatment of the deferred costs in ASC 340. Record any required journal entries as of the date of receiving the signed contract and illustrate account balances using I"l'" accounts