During October 2010, Springdale Corporation received $240,000 for one-year subscriptions for its monthly magazine, beginning with the November 2010 issue. Customer magazines were delivered throughout November and December 2010. What, if any, is Springdale's subscription liability at December 31, 2010?

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Springdale Corporation received $240,000 for a one-year subscription starting from November 2010. By December 31, 2010, two months of the magazine have been delivered (November and December), leaving 10 months undelivered. The subscription liability at December 31, 2010, is for the remaining 10 months. Since $240,000 covers 12 months, each month costs $20,000 ($240,000/12 months). Therefore, the liability for the remaining 10 months is 10 months * $20,000/month = $200,000.

During October 2010, Springdale Corporation Received $240,000 for One-Year Subscriptions