Smith & Sons Is a CPA Firm That Provides Proprietary

question 251

Essay

Smith & Sons is a CPA firm that provides proprietary software to its clients. One of its software packages sells for $150 and contains pre-programmed tutorials on basic accounting concepts. Another product sells for $3,000 and contains Smith & Sons' archive of accounting standards and articles, which Smith & Sons updates on a weekly basis and downloads to archive users for the two years following purchase of the product.
Required:
If a customer purchases both software packages on June 1, 2018, how much revenue should Smith & Sons recognize for the year?

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Definitions:

Cola

A sweetened, carbonated soft drink flavored with vanilla, cinnamon, citrus oils, and other flavorings.

Sparkling Mineral Water

Water that contains various dissolved minerals and is carbonated, providing a fizzy texture, often consumed as a beverage.

Product Complementarity

The extent to which one product enhances the use or value of another product, leading consumers to purchase them together.

Symbolic Meanings

Representations or associations that an object, action, or concept holds beyond its literal definition, often culturally defined.