Peter Senen Corporation acquires copyright from authors, paying advance royalties in some cases and in others, royalties within 30 days of year-end. Peter Senen reported a royalty expense of $375,000 for the year ended December 31, 2020. The following data are included in the corporation’s December 31, 2020 2019 2020 Prepaid royalties 60,000 50,000 Royalties payable 75,000 90,000 Under the cash basis, what amount of royalty expense should report in its 2020 profit or loss?
Peter Senen Corporation acquires copyright from authors, paying advance royalties in some cases and in others, royalties within 30 days of year-end. Peter Senen reported a royalty expense of $375,000 for the year ended December 31, 2020. The following data are included in the corporation’s December 31, 2020
2019 2020
Prepaid royalties 60,000 50,000
Royalties payable 75,000 90,000
Under the cash basis, what amount of royalty expense should report in its 2020 profit or loss?
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