D Question 18 UniTel Co provides a bundled-service package to B. Mann for $4,200 upfront. The service package includes upfront advice, 'on-call' advice, and database access for a 1-year period. If each service was sold separately to B. Mann the fees would be: Up-front advice: $900 On-call advice: $1,800 Database access: $2,700 Using the relative fair value approach, what is the amount of revenue recognised in relation to the on-call advice is (rounded to the nearest whole dollar): $700 $1,400 $1,800 $2,100

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 18
UniTel Co provides a bundled-service package to B. Mann for $4,200 upfront. The service package
includes upfront advice, 'on-call' advice, and database access for a 1-year period.
If each service was sold separately to B. Mann the fees would be:
Up-front advice: $900
On-call advice: $1,800
Database access: $2,700
Using the relative fair value approach, what is the amount of revenue recognised in relation to the
on-call advice is (rounded to the nearest whole dollar):
$700
$1,400
$1,800
$2,100
Transcribed Image Text:Question 18 UniTel Co provides a bundled-service package to B. Mann for $4,200 upfront. The service package includes upfront advice, 'on-call' advice, and database access for a 1-year period. If each service was sold separately to B. Mann the fees would be: Up-front advice: $900 On-call advice: $1,800 Database access: $2,700 Using the relative fair value approach, what is the amount of revenue recognised in relation to the on-call advice is (rounded to the nearest whole dollar): $700 $1,400 $1,800 $2,100
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