Determine the transaction price of the arrangement

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Reference no: EM131984503

Shamrock' s Agency sells an insurance policy offered By Capital Insurance Company for a commission of $82 on January 2, 2017. In addition. Shamrock will receive an additional commission of $8 each year for as long as the policyholder does not cancel the policy.

After selling the policy, Shamrock does not have any remaining performance obligations.

Based on Shamrock' s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years.

It has no evidence to suggest that previous policyholder Behavior will change.

Determine the transaction price of the arrangement for Shamrock, assuming 110 policies are sold. Transaction price $

Determine the revenue that Shamrock will recognize In 2017. (Round answer to 0 decimal places, e.g. 5, 125.) Revenue $

Reference no: EM131984503

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