Reference no: EM132811980

Waterway Industries's trademark was licensed to Carla Vista Co. 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.

Waterway received the following royalties from Carla Vista:

              March 15              September 15
2019      $9900                    $14500
2020       $12300                 $19100

problem 1: Carla Vista estimated that sales of the trademarked items would total $69000 for July through December 2020. In Waterway's 2020 income statement, the royalty revenue should be

Option 1: $29450.
Option 2: $32550.
Option 3: $41750.
Option 4: $48750.