On 1st July 2023, LizardCom Co provides a bundled-service package to E. Aardvark for $1200 upfront.The service package includes: Upfront advice Database access for a 1-year period If each service wassold separately to E. Aardvark the fees would be: Up-front advice $600 Database access $900 Using therelative fair value approach, the amount of revenue recognised by LizardCom in relation to the databaseaccess over the financial year ended 30th June 2024 is (rounded to the nearest whole dollar): Group ofanswer choices 600 720 900 800

Under the relative fair value method, the issuer makes separate estimates of the fair value of each…

Answered: On 1st July 2023, LizardCom Co provides…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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): O $700 O $1,400 $1,800 $2,100
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Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math tutorial programalong with a one-year subscription to the online LearnIt Office Hours virtual classroom. LearnIt-Plus retails for$200. When sold separately, the LearnIt math tutorial sells for $150, and access to the LearnIt Office Hours sellsfor $100 per year. When should Orange recognize revenue for the parts of this arrangement? Would your answerchange if Orange did not sell the LearnIt Office Hours separately, but believed it would price it at $100 per yearif they ever decided to do so?
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On August 31, 2022, Firewall Co. licensed its $9,600 application that will protect a customer's computer system from any cyber-attacks for a period of one year. Firewall will need to update this application every month for to fully protect the customers' computer system. How many performance obligation(s) does Firewall have? Also identify the amount of license revenue that Firewall should recognize in 2022 if it has a calendar year end. One performance obligation, and $9,600 license revenue should be recognized in 20X1. Two performance obligation, and $9,600 license revenue should be recognized in 20X1. One performance obligation, and $3,200 license revenue should be recognized in 20X1. Two performance obligation, and $3,200 license revenue should be recognized in 20X1.
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