Vail Resorts, Inc. is an American mountain resort company headquartered in Broomfield, Colorado. Vail Resorts, Inc., operates a downhill ski area near Snomass, CO. An all-day adult lift ticket can be purchased for $85. Adult customers also can buy a season pass that entitles the pass holder to ski any day during the season. The season typically runs from December 1 to April 30. Vail Resorts, Inc. expects its season pass holders to use their passes equally throughout the season. Vail Resorts, Inc's fiscal year ends on December 31. On November 6, 2024, James Smith purchased a season pass for $445.

Required:

1. When should Vail Resorts Inc recognize revenue from the sale of its season passes?

2. Prepare the appropriate journal entries that Vail Resorts Inc would record on November 6 and December 31.

3. What will be included in the Vail Resorts Inc 2024 income statement and balance sheet related to the sale of the season pass to James Smith?