The Atlantic Bears, a major league sports team, began the season with five home games to be played in March. Other financial information follows:
• During January and February 2020, the team received $600,000 ($200,000 in January and $400,000 in February) in cash in exchange for tickets for five home games in March 2020.
• During February 2020, the team signed a star to a four-year contract. The team will pay the star $240,000 in salary each year in addition to a $300,000 signing bonus. The signing bonus will be paid in early January 2020, which is the first day the star play reports to the team training.
• All other team expenses total $400,000 per month.
a. How much of the $600,000 cash received will be recognized as revenue in January, February, and March of 2020?
b. How much of the signing bonus will be shown as an expense in 2020?
c. Using the above numbers only, calculate March 2020 net income.