Ivanhoe's Agency sells an insurance policy offered by Kingbird Insurance Company for a commission of $90. In addition, Ivanhoe will receive a further commission of $60 each year for as long as the policyholder does not cancel the policy. After selling the policy, Ivanhoe does not have any remaining performance obligations. Based on its significant experience with these types of policies, Ivanhoe estimates that policyholders on average renew the policy for 5.0 years. It has no evidence to suggest that previous policyholder behaviour will change. (a) Determine the transaction price of the arrangement for Ivanhoe, assuming 100 policies are sold. Transaction price $

Ivanhoe's Agency sells an insurance policy offered by Kingbird Insurance Company for a commission of $90. In addition, Ivanhoe will receive a further commission of $60 each year for as long as the policyholder does not cancel the policy. After selling the policy, Ivanhoe does not have any remaining performance obligations. Based on its significant experience with these types of policies, Ivanhoe estimates that policyholders on average renew the policy for 5.0 years. It has no evidence to suggest that previous policyholder behaviour will change. (a) Determine the transaction price of the arrangement for Ivanhoe, assuming 100 policies are sold