F2-M3 Adjusting Journal Entries

Question 1

In its YE IS, what amount should VIP report as royalty expense?

2/12 purchased copyright to book for $15k and agreed to pay royalties equal to 10% of book sales, with a guaranteed minimum royalty of $60k

Answer 1

800,000 book sales
0.1 royalty %
80,000 Royalty Expense