Shamrocks Agency sells an insurance policy offered by Capital Insurance Company for a commission of $109 on January 2, 2017. Shamrock will receive an additional commission of $10 each year for as long as the policyholder does not cancel the policy. After selling the policy, Shamrock does not have any remaining performance obligations. Based on Shamrocks significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years after the first year before terminating their insurance policy. It has no evidence to suggest that previous policyholder behavior will change.

Determine the transaction price of the arrangement for Shamrock, assuming 90 policies are sold. Transaction price - 13860

Determine the revenue that Shamrock will recognize in 2017. (Round answer to 0 decimal places, e.g. 5,125.)