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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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