please answer all parts 1-4

Customized Software, a software company [the \"Company\"}, is contracted by a bank {the \"Bank\"} to provide a customised online platform for the Bank's mortgage loan applications [the \"Loan Platform"}_ Bank customers use the Loan Platform to complete online mortgage applications, which involves inputting relevant information {e.g., name, address, employment, income, assets} and uploading supporting documents {e_g., taa: returns, bank statements}. The Loan Platform enables both the Bank and the applicants to retrieve necessary informalion and documents as well as track the status ofthe lending process in real time. To develop the Loan Platform, the Company signicantly modies and customizes its proprietary loan application software to work. withthe existing systems used by the Bank's credit, customer service, and accounting departments. To create a Loan Platform that meets the Bank's specifications, the Company is contractually required to perform the following specic software development activities [the \"Software Services"}: - Conduct interviews with Bank personnel to understand system requirements and determine how to establish interfaces needed for the Bank to integrate the Loan Platme with its existing systems. - Test the Loan Platform in a test emironment using dummy transactions. - Perform application program interface additions and modications to the Loan Platform that are needed to support the Bank's integration and data export requirements. - Add custom functionalities to the Loan Platform {e_g., Bank-specic underwriting and reporting features, integrationwith the Bank's customer service}. - Customize the design ofthe Loan Platform {e.g., Bank's logo, branding, color scheme, preferred button placement}. Because the Loan Platform is highly customized, loan applicants perceive that they are accessing the Bank's 1Web site and may be unaware ofthe Company's involvement. The Bank does not have the ability to direct the use ofthe Loan Platform during the Software Services period and is not allowed to run the Loan Platform on Bank hardware at any time. Instead, aer the Soware Services are completed, the Company hosts the Loan Platform on its own servers, which allows the Bank and its loan applicants to access the software online [the \"Processing Services"). The Company has no obligation to perform further work on the Loan Platform {e.g., customization, upgrades} aer the Software Services are completed. Because the Loan Platform runs on the Company's proprietary technology, no other vendor has the ability to perform the Software Services or Processing Services. The Loan Platform is delivered to the Bank as a service in the form ofthe Processing Services. That is, no software license is transferred to the Bank. The Software Services commence on July 1, EEK], and continue through December 31, 201(1. The Processing Services commence on January 1, EDIE, and continue for a term ofve years. The contract requires the Bank to pay the Company nonrefundable fees of $3 million at the commencement ofthe Software Senices {ie., on July 1, 20'le and $3 million over the period in which the Company will prmide the Processing Services {i.e., equal monthly installments between January 1, IDES, and December 31, EUXJ]. Neither party has a unilateral option to extend the contract, but the parties are free to negotiate an extension ifdesired. The Company concludes the following: - The provisions ofFASB Accounting Standards Update [ASH] No. 2014-09, Revenue From Contract: With Cmtomera {1" opr'c 1506}, and related amendments are e'ective for the Company. - The Company's customer, as dened in FASB Accounting Standards Codication {ASC} Subtopic 512115-10, Raven-ire Fro-m Contract: With Customers rewall, is the Bank {as opposed to the mortgage loan applicants}. - The arrangement is within the scope ofASC 506-11} and meets the criteria in ASC 5105-10-2 51 to he considered a contract with a customer. - Any explicit or implicit promises other than the Software Services and the Processing Services are immaterial in the context of the contract and need not be considered. - The total transaction price, as described in ASC U-l-SIS, is the sum ofthe contractually stated fees [i_e_, $5 million}. - The Software Sen-ices are required to be performed to create the customized Loan Platform that the Company will use to provide the Processing Services to the Bank. In other words, the Software Services are integral to the Bank's ability to derive its intended benet om the Processing Services. - The Bank does not derive value from the Soware Services; rather, it derives value om the Processing Services. However, the Processing Services cannot begin until the Software Services are complete [i_e., until a Loan Platform that meets the Bank's specications has been developed]. Required: 1. Do the Software Services constitute a performance obligation, as dened in ASC 606111? Explain with supportive documentation. 2. How much revemle, ifany, should the Company recognize through December 31, 20X1'? Explain with supportive documentation. 3. A. What journal entry should the Company record on July 1, EXT? Explain with supportive documentation. 3. B. How much revenue should the Company recognize in 213322\"? Explain with supportive documentation