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Teal Mountain Inc. sells prepaid telephone cards to customers. Teal Mountain then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines
Teal Mountain Inc. sells prepaid telephone cards to customers. Teal Mountain then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Teal Mountain sells $5,000 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Teal Mountain for TeleExpress lines over the three months is $2,100. Indicate how much income Teal Mountain should recognize in January, February, March, and April under IFRS. (Do not leave any answer field blank. Enter O for amounts.) Month Income January $ February $ March 0 April 0
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