June  30, 20X1 Titan Corp. licensed an archive financial database to Smart Co. for the next five years. Smart is to pay Titan $10,000 at the beginning of each year.  Titan and Smart has an incremental borrowing annual interest rates of 5% and 6% respectively. Determine the amount of revenue to be recognized by Titan in 20X1? $45,460 $5,000 $50,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...
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 June  30, 20X1 Titan Corp. licensed an archive financial database to Smart Co. for the next five years. Smart is to pay Titan $10,000 at the beginning of each year.  Titan and Smart has an incremental borrowing annual interest rates of 5% and 6% respectively. Determine the amount of revenue to be recognized by Titan in 20X1?

$45,460
$5,000
$50,000
$44,651
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