Snare receives a monthly agreed upon fee of $90,000. Snares compensation contract provides an incentive fee of 6% of loans amounts processed over the base of 80,000 applications, paid in December of each year. During each of the last 5 years, Snare has processed 1,200 loans over the 80,000 base, the average amount of the excess loan applications has totaled $1,250,000. Snare accounts for contracts as a single performance obligation because their services are interdependent and interrelated. How much in revenue should Snare record for the six months ended June 20X2?

• A.

  $540,000

• B.

  $1,115,000

• C.

  $577,500

• D.

  $615,000