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Blossom Company follows IFRS and sells consumer-relationship software to Kingbird Inc. to be used for three years. In addition to providing the software, Blossom promises to provide consulting services over the life of the contract to maintain operability within Hedges' computer system. The total transaction price is $157,500. Based on stand-alone values, Blossom estimates the consulting services have a value of $63,900 and the software has a value of $93,600. Upon installation of the software on July 1, 2020, Kingbird pays $94,500; the contract balance is due on December 31, 2020.
Problem 1: Identify the performance obligations and the revenue in 2020, assuming the performance obligations are interdependent, Revenue in 2020?
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