Review eHealth's Form $10-$K for the fiscal year ended December $31,2019($the $\text{'}2019$ fiscal

$($year$\text{'}).$ Use this information to complete all the following requirements:

Explain the accounting policy that eHealth uses for the recognition of commission

revenue. $($Hint: read p$.80$ of the Form $10-$K$).$

Summarize how eHealth measures the constrained life$-$time value $($LTV$)$ of commissions.

$($Hint: read p$.81$ of the Form $10-$K$)$

Assume that instead of using its current policy for the recognition of commission

revenues, eHealth instead recognized commission revenues when it received the

associated cash from customers. Estimate how much "Income $($loss$)$ from operations"

eHealth would have reported in $2019.$

Which of the above two accounting policies do you think provides the fairest

representation of eHealth's financial performance? Explain your answer.