TelCo Provides a Bundled Service Offering to a Customer for $3000

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:

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:

Verified

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