On January 1, 2018, FAVB ( A C Corporation) was charged in total up front $1M for a software license (1 year term) and a maintenance contract ( 4 year term). They paid XYZ Corporation this payment. Under the new standards, $800k was allocated to the software license and $200k to the maintenance contract. Tax uses the one-year deferral under Rev Proc 2004.34 and the new IRC 451 rules

Show the book and tax entries for revenue recognition of this transaction for 2018-2021 for XYZ

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To clarify I understand that FAVB a C Corporation entered into a transaction with XYZ Corporation on ... View the full answer