14. On January 1, 20x1, Feedback, a music record label, licenses to a customer a 1975 recording of a classical symphony by a noted orchestra. The customer, a consumer products company, has the right to use the recorded symphony in all commercials, including television, radio and online advertisements for 2 years in the Philippines. In exchange for providing the license, Feedback receives a fixed consideration of P10,000 per month. The contract does not include any other goods or services to be provided by Feedback. The contract is non-cancellable. The license is transferred to the customer on January 1, 20x1. The appropriate discount rate is 12%. How much contract revenue (excluding interest revenue) will Feedback recognize in 20x1? a. 120,000 b. 240,000 c. 202,806 d. 212,434
14. On January 1, 20x1, Feedback, a music record label, licenses to a customer a 1975 recording of a classical symphony by a noted orchestra. The customer, a consumer products company, has the right to use the recorded symphony in all commercials, including television, radio and online advertisements for 2 years in the Philippines. In exchange for providing the license, Feedback receives a fixed consideration of P10,000 per month. The contract does not include any other goods or services to be provided by Feedback. The contract is non-cancellable. The license is transferred to the customer on January 1, 20x1. The appropriate discount rate is 12%. How much contract revenue (excluding interest revenue) will Feedback recognize in 20x1? a. 120,000 b. 240,000 c. 202,806 d. 212,434
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:14. On January 1, 20x1, Feedback, a music record label, licenses to a customer a 1975 recording of a
classical symphony by a noted orchestra. The customer, a consumer products company, has the
right to use the recorded symphony in all commercials, including television, radio and online
advertisements for 2 years in the Philippines. In exchange for providing the license, Feedback
receives a fixed consideration of P10,000 per month. The contract does not include any other goods
or services to be provided by Feedback. The contract is non-cancellable. The license is transferred
to the customer on January 1, 20x1. The appropriate discount rate is 12%. How much contract
revenue (excluding interest revenue) will Feedback recognize in 20x1?
a. 120,000
b. 240,000
c. 202,806
d. 212,434
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