=+E3-22 Effect ofdeferred revenue Obj 3 V

a. $126 million Time Warner Inc. reported deferred revenue of $2,018 million and $2,144 million as of December 31, 2006 and 2005, respectively. For the year ending December 31, 2006, Time War¬

ner reported total revenues of $44,224 million,

(a) What was the amount ofthe adjustment for unearned revenue for 2006?

(b) What would have been total revenues under the cash basis after considering the effect of(a)?