Question: On May 1 , 2 0 2 6 , Varga Tech Services signed a $ 8 , 1 6 0 consulting contract with Shaffer Holdings.

On May 1,2026, Varga Tech Services signed a $8,160 consulting contract with Shaffer Holdings. The contract requires Varga to
provide computer technology support services on a continuous basis over the period from May 1,2026, to April 30,2027, with Shaffer
paying the entire $8,160 on May 1,2026.
How much revenue and deferred revenue should Varga recognize in its year-end December 31,2026, financial statements?
Note: Do not round intermediate calculation.
On May 1,2026, Varga Tech Services signed a $8,160 consulting contract

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