In 2025, a textbook written by Carla Vista Co. personnel was sold to Blossom Publishing, Inc....

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In 2025, a textbook written by Carla Vista Co. personnel was sold to Blossom Publishing, Inc. for royalties of 15% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year. Royalty income of $350000 was accrued at 12/31/25 for the period July-December 2025. Royalty income of $363000 was received on 3/31/26, and $401000 on 9/30/26. Carla Vista learned from Blossom that sales subject to royalty were estimated at $5460000 for the last half of 2026. In its income statement for 2026, Carla Vista should report royalty income at O $1233000. O $1220000. $764000. O $1131000. In 2025, a textbook written by Carla Vista Co. personnel was sold to Blossom Publishing, Inc. for royalties of 15% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year. Royalty income of $350000 was accrued at 12/31/25 for the period July-December 2025. Royalty income of $363000 was received on 3/31/26, and $401000 on 9/30/26. Carla Vista learned from Blossom that sales subject to royalty were estimated at $5460000 for the last half of 2026. In its income statement for 2026, Carla Vista should report royalty income at O $1233000. O $1220000. $764000. O $1131000.