Decker Company assigns some of its patents to other enterprises under a variety of licensing agreements. In some instances advance royalties are received when the agreements are signed, and in others, royalties are remitted within sixty days after each license year-end. The following data are included in Decker’s December 31 balance sheet:
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|
2005 |
2006 |
|
|
Royalties receivable |
$90,000 |
$85,000 |
|
Unearned royalties |
60,000 |
40,000 |
During 2006 Decker received royalty remittances of $200,000. In its income statement for the year ended December 31, 2006, Decker should report royalty income of
- $195,000
- $215,000
- $220,000
- $225,000