Question: Objectives of the Case This case involves determining the appropriate revenue recognition for a contract involving multiple performance obligations. Applicable Professional Pronouncements ASC 606-10-05 ASC

Objectives of the Case This case involves determining the appropriate revenue recognition for a contract involving multiple performance obligations. Applicable Professional Pronouncements ASC 606-10-05 ASC 606-10-25-1 to 30 ASC 606-10-32-2 to 41 Additional Assumption Assume that the standalone selling price of the activation card is $200. REQUIRED Apply each of the five step process for revenue recognition under ASC 606-10 to the case facts. 1. Identify the performance obligations. 2. Allocate the selling price to the performance obligations. 3. How or when is revenue recognized for each performance obligation

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