on January 1, 20x1, Baguio Beans, a well-known basketball team' of its name and logo to a customer. The customer, an apparel designer, has the right to use Baguio Beans' name and logo on items including t-shirts, caps, mugs and towels for two years. In exchange for providing the license, Baguio Beans will receive a fixed consideration of 200,000 and a royalty of 20% of the sales price of any items using the team name or logo. The customer expects that Baguio Beans will continue to play games and provide a competitive team. The license is transferred to the customer at contract inception. The customer reports sales of 1,000,000 for the year. How much revenue will Baguio Beans recognize from the contract in 20x1? a. 200,000 b. 400,000 c. 100,000 d. 300,000, (FRS 15.1E309-313 - Adapted)
on January 1, 20x1, Baguio Beans, a well-known basketball team' of its name and logo to a customer. The customer, an apparel designer, has the right to use Baguio Beans' name and logo on items including t-shirts, caps, mugs and towels for two years. In exchange for providing the license, Baguio Beans will receive a fixed consideration of 200,000 and a royalty of 20% of the sales price of any items using the team name or logo. The customer expects that Baguio Beans will continue to play games and provide a competitive team. The license is transferred to the customer at contract inception. The customer reports sales of 1,000,000 for the year. How much revenue will Baguio Beans recognize from the contract in 20x1?
a. 200,000
b. 400,000
c. 100,000
d. 300,000,
(FRS 15.1E309-313 - Adapted)
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