Decker Company assigns some of its patents to other enterprises under a variety of licensing agreements. In
Question:
Decker Company assigns some of its patents to other enterprises under a variety of licensing agreements. In some instances advance royalties are received when the agreements are signed, and in others, royalties are remitted within 60 days after each license year- end. The following data are included in Decker's December 31 balance sheet:
Year 1 Year 2
Royalties receivable $90,000 $85,000
Unearned royalties 60,000 40,000
During Year 2. Decker received royalty remittances of $200,000. In its income statement for the year ended December 31, Year 2. What is the Decker should report royalty revenue?
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw