Explanation

Under revenue recognition principles (particularly IFRS 15/ASC 606):

1. Software license component ($3.6 million): This is recognized immediately at the beginning of the contract since it represents a one-time transfer of intellectual property rights.

2. Support service component ($2.4 million): This is recognized over the contract period of 3 years using the straight-line method:

   • Annual revenue = $2.4 million ÷ 3 years = $0.8 million per year

3. Total revenue for the most recent year:

   • License revenue: $3.6 million (recognized immediately)
   • Support revenue: $0.8 million (first year's allocation)
   • Total = $4.4 million

Therefore, the most appropriate revenue recognition is $4.4 million, representing the immediate recognition of the license component plus the first year's allocation of the support services.