Exercise 3-7 Revenue and Expense Recognition Lacoma Company produces computer software that Kozuch, Inc., sells. Lacoma receives a royalty of 15 percent of sales. Kozuch pays royalties to Lacoma semianesually-on May 1 for sades in the amount of $12,000 were accrued on December 31, 2013. Cash in the amounts of $12,000 and $20,000 was paid and recelved on May I and November 1, 2014, respectively, Software sales during the July to December 2014 period totaled $300,000. Lacoma 1. Calculate the amount of royality expense for Kozuch and royalty income for Lacoma during 2014. January to June 2014: July to December 2014: Total for 2014