During 2016, Air Amenadiel began operations as an airline. Air Amenadiel offers a customer loyalty program. For each aeronautical mile that a passenger travels on a paid flight, the passenger accrues one flight mile. Passengers can redeem accrued flight miles for free air travel. Earned miles do not expire. Air Amenadiel's analysis of its competitors' programs suggests an average redemption rate of 55%. In 2016, Air Amenadiel sold $5,000,000 in plane tickets which included $1,000,000 for travel in 2017. It awarded 50,000,000 flight miles with an estimated fair value of $540,000. 1,375,000 flight miles were redeemed in 2016. Instructions: a. What is the amount of revenue from flights to be recognized in 2016? b. What is the amount of revenue from the miles award program to be recognized in 2016? c. Based on the information above what would be reported on the Statement of Financial Position at December 31, 2016