Question: On May 1 , 2 0 2 4 , Varga Tech Services signed a $ 1 1 4 , 0 0 0 consulting contract with

On May 1,2024, Varga Tech Services signed a $114,000 consulting contract with Shaffer
Holdings. The contract requires Varga to provide computer technology support services
whenever requested over the 12-month period from May 1,2024, to April 30,2025, with
Shaffer paying the entire $114,000 on May 1,2024.
This contract qualifies for revenue recognition over time because:
The performance obligation is consumed by the customer as the seller's work is performed.
The performance obligation is satisfied at a point in time.
The contract spans 12-months.
Payment is received upfront.
On May 1,2024, Varga Tech Services signed a $114,000 consulting contract

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