Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math tutorial program along with a one-year subscription to the online LearnIt Office Hours virtual classroom. LearnIt-Plus retails for $340. When sold separately, the LearnIt math tutorial sells for $345, and access to the LearnIt Office Hours sells for $230 per year.How much revenue will be deferred and recognized over the life of the one-year period in which the Office Hours are delivered?If Orange did not sell the LearnIt Office Hours separately, but believed it would price it at $230 per year.How much revenue will be recognized upon delivery of the LearnIt software?How much revenue will be deferred and recognized over the life of the one-year period in which the Office Hours are delivered?
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