ABC Co. manages a school for the Old England School District. In year 1, ABC Co.'s first year of operating the school, the school earned per pupil fees of $500,000. ABC is responsible for teacher salaries and is considered to be the primary obligor for the salaries. However, the school district paid the teachers' salaries of $200,000 and paid ABC the net amount of $300,000 in respect of year 1 operations. ABC incurred other administrative expenses of $60,000 for the year (ignoring taxes), which it paid itself.

What is the amount of revenue that ABC should report in its income statement for year 1 in accordance with EITF 01-14? Explain

What is the amount of ABC Co.'s net income for year 1?