Exercise 18-8 Waterways Agency sells an insurance policy offered by Capital Insurance Company for a commission of $109 on January 2, 2017. In addition, Waterway will receive an additional commission of $10 each year for as long as the policyholder does not cancel the policy. After selling the policy, Waterway does not have any remaining performance obligations. Based on Waterways 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. Correct answer. Your answer is correct. Determine the transaction price of the arrangement for Waterway, assuming 90 policies are sold. Transaction price $Entry field with correct answer SHOW SOLUTION LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Determine the revenue that Waterway will recognize in 2017. (Round answer to 0 decimal places, e.g. 5,125.) Revenue $Entry field with incorrect answer

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