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Question - In 2021, Ramon Comics Corp. sold a comic strip to Final Fantasy, Inc. and will receive royalties of 20% of future revenues associated with the comic strip. At December 31, 2022, Ramon reported royalties receivable of P75,000 from Final Fantasy. During 2023, Ramon received royalty payments of P200,000. Final Fantasy reported revenues of P1,500,000 in 2023 from the comic strip. In its 2023 income statement, what amount should Ramon report as royalty revenue?
a. P300,000
b. P175,000
c. P200,000
d. P125,000
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