On September 1 of Year 1, Ashlyn Company sold a plasma TV screen and TWO-year warranty to a customer for a joint price of $2,000. Ashlyn collected all of the cash up front on September 1, the contract-signing date. The two-year warranty period begins on the date that Ashyln Company delivers the plasma TV screen to the customer. Ashlyn Company has generated the following information regarding sales of this type.

Sales price of plasma TV screen if sold separately, $1,800

Sales price of TWO-year warranty if sold separately, $600

Ashlyn Company delivered the plasma TV screen to the customer on October 1 of Year 1 which starts the two-year warranty period. How much WARRANTY REVENUE should Ashlyn report for Year 1?

$20.83

$75.00

$0

$50.00

$62.50