Tran Technologies licenses its functional intellectual property to Lyon Industries. Terms of the arrangement require Lyon to pay Tran $$550,000$ on April $1,2024,$ when Lyon first obtains access to Tran$$s intellectual property, and then in the future to pay Tran a royalty of $4\%$ of future sales of products that utilize that intellectual property. Tran anticipates receiving sales$-$based royalties of $$1,050,000$ during $2024$ and $$1,550,000$ per year for the years $2025$ to $2029.$ Assume Tran accounts for the Lyon license as a right of use, because Tran$$s actions subsequent to April $1,2024,$ will not affect the benefits that Lyon receives from access to Tran$$s intellectual property.

Required:

Access the FASB Accounting Standards Codification at the FASB website $($www$.$fasb.org$)$ and select Basic View for free access. Identify the specific nine$-$digit Codification citation $($XXX$-$XX$-$XX$-$XX$)$ for accounting for variable consideration arising from sales$-$based royalties on licenses of intellectual property, and consider the relevant GAAP.

What journal entry would Tran record on April $1,2024,$ when it receives the $$550,000$ payment from Lyon?

Assume on December $31,2024,$ Tran receives $$1,050,000$ for all sales$-$based royalties from Lyon in $2024.$ What journal entry would Tran record on December $31,2024,$ to recognize any revenue that should be recognized in $2024$ with respect to the Lyon license that it has not already recognized?

Assume Tran accounts for the Lyon license as a five$-$year right to access Tran$$s symbolic intellectual property from April $1,2024,$ through March $31,2029.$ Tran expects that its ongoing marketing efforts will affect the value of the license to Lyon during the five$-$year license period. Repeat requirements $2$ and $3.$