On November 1, 20X1, Gerakos Corporation sold software and a six- month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It sells technical support for $30,000. Gerakos allocates the transaction price based on relative stand-alone values. Required: What amount of revenue does Gerakos recognize in 20X1 and in 20X 2? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
On November 1, 20X1, Gerakos Corporation sold software and a six- month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It sells technical support for $30,000. Gerakos allocates the transaction price based on relative stand-alone values. Required: What amount of revenue does Gerakos recognize in 20X1 and in 20X 2? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On November 1, 20X1, Gerakos Corporation sold software and a six-
month technical support contract to a customer for $80,000. Gerakos
sells the same software without technical support for $60,000. It sells
technical support for $30,000. Gerakos allocates the transaction price
based on relative stand-alone values.
Required:
What amount of revenue does Gerakos recognize in 20X1 and in 20X
2? (Do not round intermediate calculations. Round your answers to
the nearest whole dollar amount.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F36bbf54e-726a-4940-98be-d46cb9d35b40%2F802ca4e3-8c14-4547-b203-7719c7685c3e%2Fedwk9gr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On November 1, 20X1, Gerakos Corporation sold software and a six-
month technical support contract to a customer for $80,000. Gerakos
sells the same software without technical support for $60,000. It sells
technical support for $30,000. Gerakos allocates the transaction price
based on relative stand-alone values.
Required:
What amount of revenue does Gerakos recognize in 20X1 and in 20X
2? (Do not round intermediate calculations. Round your answers to
the nearest whole dollar amount.)
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