Question: Howard Ltd. (HL), an app developer, has a new game called Panda World that allows players to choose an avatar panda and travel through an

Howard Ltd. (HL), an app developer, has a new game called Panda World that allows players to choose an avatar panda and travel through an imaginary world. A player can download the game for $10.99 and purchase tokens for $0.50 each. Tokens allow players to move faster through the world and accessorize their avatar. HL recently started selling a bundled download for $50, in which a new player can download the game and receive 100 tokens. HL recognizes revenue on the download immediately and defers recognition of revenue from the tokens until they are used in the game. HL reports under ASPE. In the current fiscal year, HL sold 6,500 bundled downloads for $50 each.

What is the total amount of revenue that HL should recognize for game downloads in the current fiscal year related to these sales?

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