Rill Co. owns a 20% royalty interest in an oil well. Rill receives royalty payments on January 31 for the oil sold between the previous June 1 and November 30, and on July 31 for oil sold between December 1 and May 31. Production reports show the following oil sales:
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|
June 1, 2005 – November 30, 2005 |
$300,000 |
|
December 1, 2005 – December 31, 2005 |
50,000 |
|
December 1, 2005 – May 31, 2006 |
400,000 |
|
June 1, 2006 – November 30, 2006 |
325,000 |
|
December 1, 2006 – December 31, 2006 |
70,000 |
What amount should Rill report as royalty revenue for 2006?
- $140,000
- $144,000
- $149,000
- $159,000