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Financial Accounting Standards Board 1 of 62 https://asc.org/print&rendercmd=subtopic&trid=2197878&nav_type.

"2. Revenue Recognition for Software (25 points)
a. A software vendor sold $300,000 software to a customer. The price includes the software (no addition development or modification needed), the installation of the software and a one-year technique support. If the software can be purchased at a standalone price of $250,000 with the fair values of installation and one-year technique support of $5,000 and $57,500, respectively, how should the company recognize the sales price of $300,000 upon the delivery and the completion of the installation? You need to provide the supporting documents for your answer (i.e., ASC number).
Requiredment: 2 pages with 12pts doubled space"
March 21, 2012 [985-605] Software - Revenue Recognition [985-605-00] Revenue Recognition - Status General [985-605-05] Revenue Recognition - Overview and Background General > Hosting Arrangement [985-605-15] Revenue Recognition - Scope and Scope Exceptions General > Overall Guidance > Entities > Transactions [985-605-20] Revenue Recognition - Glossary [985-605-25] Revenue Recognition - Recognition General > Basic Principles >> Software Requiring Significant Production, Modification, or Customization >> Software Not Requiring Significant Production, Modification, or Customization >> Multiple-Element Arrangements > Persuasive Evidence of an Arrangement Exists > Delivery Has Occurred >> Customer Acceptance >> Multiple Copies of Software Products versus Multiple Licenses >> Delivery Other than to the Customer >> Delivery Agents >> Authorization Codes > The Vendor's Fee Is Fixed or Determinable and Collectibility Is Probable >> Factors that Affect the Determination of Whether a Fee Is Fixed or Determinable and Collectible >>> Extended Payment Terms >>> Reseller Arrangements >>> Customer Cancellation Privileges >>> Fiscal Funding Clauses > Multiple-Element Arrangements >> Additional Software Deliverables and Rights to Exchange or Return Software >>> Upgrades or Enhancements >>> Additional Software Products >>> Rights to Exchange or Return Software >> Postcontract Customer Support >>> Postdelivery Telephone Support at No Additional Charge >>> Postcontract Customer Support Granted to Resellers Financial Accounting Standards Board https://asc.fasb.org/print&rendercmd=subtopic&trid=2197878&nav_type. .. 1 of 62 3/21/2012 5:31 PM
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>> Services >>> Funded Software-Development Arrangements > Contract Accounting >> Segmentation >> Measuring Progress-to-Completion Under the Percentage-of-Completion Method >> Input Measures >> Output Measures [985-605-50] Revenue Recognition - Disclosure General [985-605-55] Revenue Recognition - Implementation Guidance and Illustrations General > Implementation Guidance >> Flowchart of Revenue Recognition on Software Arrangements >> Multiple-Element Arrangements >>> Effect of Multiple Contracts or Agreements >>> Arrangements that Include Usage-Based Fees >>>> Separate Fees for License, Usage, and Renewal of Postcontract Customer Support >>>> Postcontract Customer Support Included in Usage-Based Fee >>>> All Fees Usage-Based >> Extended Payment Terms >>> Effect of Prepayments >>> Illustration of Extended Payment Terms >>> Concessions by a Software Vendor to Customers >>> Overcoming the Presumption of Concessions in Arrangements with Extended Terms >>> Subsequent Cash Receipt when Vendor Does Not Have a Practice of Providing Extended Terms >>> Transfer by Vendor of Extended Payment Rights to Independent Third Party Without Recourse >>> Effect of Customer Financing of Extended Payments >>>> Customer Financing with No Vendor Participation >>>> Effect of Prepayments on Software Revenue Recognition when the Vendor Participates in Customer Financing >>>> Indicators of Incremental Risk when Vendor Participates in Customer Financing >>>> Overcoming the Presumption of Incremental Risk when Vendor Participates in Customer Financing >>>> Vendor Actions that May Not Indicate Incremental Risk >>>> Effect of Interest Rate Buydown in Connection with Customer Financing >>>> Additional Considerations when a Reseller Obtains Financing >> Postcontract Customer Support >>> Postcontract Customer Support During Deployment Phase >>> Fair Value of Postcontract Customer Support >>>> Fair Value of Postcontract Customer Support in a Perpetual License >>>> Fair Value of Postcontract Customer Support in a Short-Term License >>>> Fair Value of Postcontract Customer Support in a Multiyear Time-Based License >>>> Fair Value of Postcontract Customer Support in Perpetual and Multiyear Time-Based Licenses Financial Accounting Standards Board https://asc.fasb.org/print&rendercmd=subtopic&trid=2197878&nav_type. .. 2 of 62 3/21/2012 5:31 PM
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