Q4: If the hockey association provides a timely notice of its intent to terminate the contract, Damian Company may also reimburse Hortons March 31, 2021, installment payment if Damian Company finds a suitable bidder who agrees to the installment terms outlined in the original contract.

When should Damian Company record revenue? List the amount of revenue that should be recorded at the appropriate date. Also, explain your rationale using principles of accrual accounting. What additional information would be helpful in arguing your clients case? Explain.

Present a persuasive argument for your client, the taxing authority. The taxing authoritys objective is to have Damian Company record revenue as soon as possible based on the revenue recognition principle of accrual accounting.