TopTel Co Provides a Bundled-Service Package to J

TopTel Co provides a bundled-service package to J. Willis for $2000 upfront. The service package includes:
-upfront advice
-'on-call' advice
-database access for a 1-year period.
If each service was sold separately to J. Willis the fees would be:
-Up-front advice: $400
-On-call advice : $1800
-Database access: $600
Using the relative fair value approach, the amount of revenue recognised in relation to the database access is (rounded to the nearest whole dollar) :

A) $286.
B) $429.
C) $1286.
D) indeterminable based on the facts provided.

Correct Answer:

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