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In November and December 2020, Crane Company, a newly organized magazine publisher, received $79200 for 1,000 three-year subscriptions at $26 per year, starting with the January 2021 issue. Crane included
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In November and December 2020, Crane Company, a newly organized magazine publisher, received $79200 for 1,000 three-year subscriptions at $26 per year, starting with the January 2021 issue. Crane included the entire $79200 in its 2020 income tax return. What amount should Crane report in its 2020 income statement for subscriptions revenue

User SurbhiGoel
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2 votes

Answer:

Crane should report $26,400 as subscription revenue in Income Statement

Step-by-step explanation:

Amount received towards Subscription = $79,200 for 3 years

Subscription revenue to be recognized in Income Statement of 2020 =

= $79,200 / 3

= $26,400

User Dmitry Maksakov
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