Question
Kerianne paints landscapes, and in late 2016 placed four paintings with a retail price of $300 each in the Holmstrom Gallery. Keriannes arrangement with Holmstrom
Kerianne paints landscapes, and in late 2016 placed four paintings with a retail price of $300 each in the Holmstrom Gallery. Keriannes arrangement with Holmstrom is that Holmstrom will earn a 10% commission on paintings sold to gallery patrons. As of December 31, 2016, one painting had been sold by Holmstrom to gallery patrons. |
How much revenue with respect to these four paintings should Kerianne recognize in 2016?
Please Show work, I do not just want the answer I truly desire to know how to work this problem. In my first two attempts I said she would recognize 270$ (only one painting was sold so 300$ however subtact the galleries commision of 10%= 270$)
With my second attempt I tried a completly different approach resulting in 1080$ (300*4=1200 then 1200*10%=120 and 1200-120= 1080) this too was incorrect. If someone could assist me I would be greatly oblidged. Thanks in advance |
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