In 2014,a major drug company agreed to give a not-for-profit private college $300,000 to perform testing of a new drug.An advance payment of $200,000 was received in 2014.The college was to receive $1,500 per individual test.In 2014,the college completed 100 tests.How much revenue should the college report for 2014?

Question

Quizplus · Accepted Answer

The college received an advance payment of $200,000 in 2014, which means only $100,000 of revenue is earned from completed tests in 2014 (100 tests x $1,500 per test). Therefore, the college should report $100,000 of revenue for 2014. Option C is the only choice that reflects this amount.

In 2014,a Major Drug Company Agreed to Give a Not-For-Profit