Headlands Agency sells an insurance policy offered by Capital Insurance Company for a commission of $117 on January 2, 2017. Headland will receive an additional commission of $9 each year for as long as the policyholder does not cancel the policy. After selling the policy, Headland does not have any remaining performance obligations. Based on Headlands significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years after the first year before terminating their insurance policy. It has no evidence to suggest that previous policyholder behavior will change.

Question 3 Headland's Agency sells an Insurance policy offered by Capital Insurance Company for a commission of $117 on January 2, 2017. Headland will recelve an additional commission of $9 each year for as long as the policyholder does not cancel the policy. After selling the policy, Headland does not have any remaining performance obligations. Based on Headland's significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years after the first year before terminating their insurance policy. It has no evidence to suggest that previous policyholder behavior will change Your answer is correct. Determine the transaction price of the arrangement for Headland, assuming 100 policies are sold Transaction price 15750 SHOW SOLUTIONSHOW ANSWER LINK TO TEXT LINK TO TEXT Your answer is incorrect. Try again. Determine the revenue that Headland will recognize in 2017. (Round answer to 0 decimal places, e.g. 5,125.) Revenue 12600