Question 4 Rays Inc. pays Aroz Corp $12,000,000 in December…
Question 4 Rays Inc. pays Aroz Corp $12,000,000 in December 2022 with a suite of services related to the installation of a new Enterprise Resource Planning system. The purchase price includes, installation and customization of software, training, and 6 years of customer support. Installation will occur on 1/1/2023 with customization completed within 90 days of installation. Training will consist of an introductory 8 hour session in January 2023 and a “power user” 8 hour session in January 2024, and the customer support will be earned evenly over the contract period 1/1/2023-12/31/2028. When sold separately, these products/services retail for: Installation: $7,000,000 Customization: $3,875,000 Training: $1,250,000 Customer Support $1,875,000 4)How much revenue will Rays, Inc. report in its 2022, 2023, and 2024 income statements?