Question

On 3/1/X1 Landlord Co. received a $36,000 cash payment from Renter Co. to pay for a total of 17 months, starting in the current month. How much revenue should Landlord Co. recognize in the year ending 12/31/X1? Round your answer to the nearest penny.

Answer 1

Answer: $21177

Step-by-step explanation:

First and foremost, we should note that since the revenue that Landlord Co. wants to recognize in the year ending 12/31/X1 will be for a period of 10 months that is, from 1st of March to 31st of December.

Therefore, the revenue that Landlord Co. should recognize in the year ending 12/31/X1 will be:

= $36000 × 10/17

= $21176.471

= $21177