The Following Information Relates to Questions 16 and 17

The following information relates to questions 16 and 17
TelCo provides a bundled service offering to a customer for $3000 upfront. The services provided are as follows:
Upfront advice
'on-call' advice
Database access for a 2-year period
If TelCo were to charge a separate fee for each service if sold separately the fee would be:
Up-front advice $200
On-call advice $2600
Database access $800
-Using the relative fair value approach the amount of revenue recognised in relation to the on-call advice is:

A) indeterminable based on the facts provided
B) $1000
C) $2167
D) $2600

Correct Answer:

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