Question: Sullivan Software sells packages of a software program and one year's worth of tech support for $500. Its packaging lists the $500 sales price as

Sullivan Software sells packages of a software program and one year's worth of tech support for $500. Its packaging lists the $500 sales price as comprised of a software program and technical support. All of Sullivan's sales are for cash, and there are no returns. Sullivan sells the software program separately for $475 and offers a year of tech support separately for $75.

The amount of revenue that GAAP, regarding software revenue recognition, would require Sullivan to attribute to the software program (as opposed to the technical support) is (rounded):

Group of answer choices

a. $450.

b. $475.

c. $432.

d. $400.

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