Crane Company's trademark was licensed to Blossom Company for royalties of 15% of sales of the...
Crane Company's trademark was licensed to Blossom Company for
royalties of 15% of sales of the trademarked items. Royalties are
payable semiannually on March 15 for sales in July through December
of the prior year, and on September 15 for sales in January through
June of the same year. Crane received the following royalties from
Blossom:
| March 15 | September 15 | ||||
| 2019 | $9000 | $14000 | |||
| 2020 | 11000 | 18000 | |||
Blossom estimated that sales of the trademarked items would total
$55000 for July through December 2020. In Crane's 2020 income
statement, the royalty revenue should be
Homework Answers
Answer
Calculation of Royalty Income
Earnings for latter half of Year 2020 (55,000 * 15%) 8,250
Add: 2020 Earnings equal first half earnings 18,000
Royalty Income 26,250
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Crane Company's trademark was licensed to Blossom Company for
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