The key unit for the filing segment Federal Republic of Germany is Germany

John Pickens writes mystery novels. His publisher pays him royalties for books sold each year. He is paid royalties for the first half of the year on September 30 and the second half of the year on March 31 of the following year. He received $42,000 in September, 2016. The publisher estimated that his royalties for the second half of the year would be $53,000. On March 31, 2017, he received

$57,500. Assuming that he recorded $53,000 at December 31, 2016, which one of the following is the correct journal entry on March 31, 2017? His tax rate is 35%. A) Account Debit Credit Cash 57,500 Royalties Receivable 53,000 Royalty Revenue 4,500 B) Account Debit Credit Cash 57,500 Royalty Revenue 57,500 C) Account Debit Credit Cash 57,500 Royalties Receivable 53,000 Retained Earnings 4,500 D) Account Debit Credit Cash 57,500 Royalties Receivable 53,000 Retained Earnings 2,925 Income Taxes Payable 1,575

The lessor should report the Lease Receivable for a sales-type lease on its balance sheet as

A) a current asset. B) a long-term asset. C) a current asset for the current portion and a long-term asset for the remaining amount. D) only a note to the financial statements.