Question: In 2009, Super Comics Corp. sold a comic strip to Fantasy, Inc. and will receive royalties of 20% of future revenues associated with the comic

In 2009, Super Comics Corp. sold a comic strip to Fantasy, Inc. and will receive royalties of 20% of future revenues associated with the comic strip. At December 31, 2010, Super reported royalties receivable of $75,000 from Fantasy. During 2011, Super received royalty payments of

$200,000. Fantasy reported revenues of $1,500,000 in 2011 from the comic strip. In its 2011 income statement, what amount should Super report as royalty revenue?

a. $125,000

b. $175,000

c. $200,000

d. $300,000

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