Consider the following transactions of Kokomo Company for 1996.

1. Sold a 6-month insurance policy to Taylor Corporation for \(\$ 9,000\) on March 1.

2. Leased office space to Excel Supplies for a 1-year period beginning September 1. The rent of \(\$ 36,000\) was paid in advance.

3. A sales order for merchandise costing \(\$ 9,000\) that had a sales price of \(\$ 12,000\) was received on December 28 from Warfield Company. The goods were shipped FOB shipping point on December 31 and Warfield received them on January 3, 1997.

4. Merchandise inventory on hand at year-end amounted to \(\$ 160,000\). Kokomo expects to sell the inventory in 1997 for \(\$ 180,000\).

\section*{Instructions}

For each item above, indicate the amount of revenue Kokomo should recognize in calendar year 1996. Explain.