(Answered) Crane company follows ifrs and licenses

Accounting

Crane Company follows IFRS and licenses consumer-relationship software to Larkspur Inc. for three years. In addition to providing the software, Crane promises to provide consulting services over the life of the licence to maintain operability within Larkspur' computer system. The total transaction price is $215,100. Based on stand-alone values, Crane estimates the consulting services have a value of $78,300 and the software licence has a value of $136,800. Upon installation of the software on July 1, 2017, Larkspur pays $114,300; the contract balance is due on December 31, 2017.

1. Identify the performance obligations and the revenue in 2017, assuming the performance obligations are interdependent.

2. Identify the revenue in 2017, assuming the performance obligations are not interdependent.

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