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Raghu Inc. sell two licenses to Wheatley Company on September 1, 2021. First, in exchange for $182,000, Raghu provides Wheatley with a copy of its
Raghu Inc. sell two licenses to Wheatley Company on September 1, 2021. First, in exchange for $182,000, Raghu provides Wheatley with a copy of its proprietary investment management software, which Raghu does not anticipate updating and which Wheatley can use permanently. Second, in exchange for $89,000, Raghu provides Wheatley with a 26 month right to market Wheatley's financial advisory services under the name of Raghu Inc.. Raghu Inc. is not well known in the marketplace and the owner provides no advertising or other benefits to a licensee of the Raghu Inc. trade name during the license period. Calculate the revenue that Raghu will recognize in 2021 under this agreement if Raghu reports under U.S. GAAP. (Please round answer to the nearest dollar, i.e. 24,666.67 should be entered as 24667)
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