Coronados Agency sells an insurance policy offered by Capital Insurance Company for a commission of $116 on January 2, 2017. In addition, Coronado will receive an additional commission of $11 each year for as long as the policyholder does not cancel the policy. After selling the policy, Coronado does not have any remaining performance obligations. Based on Coronados significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years. It has no evidence to suggest that previous policyholder behavior will change.

Determine the transaction price of the arrangement for Coronado, assuming 110 policies are sold. (18205 is correct)

Determine the revenue that Cornado will recognize in 2017. (166 is incorrect)