On 1 January 20X1, the publisher Mirabelle grants a foreign publisher a licence to translate and publish a novel, analysed as a right to use transferred at that date (conclusion given by the case). In return, the foreign publisher only pays a royalty of 8 % of its sales of the novel. Its 20X1 sales amount to 525,000 and it forecasts sales of 900,000 in 20X2. Calculate the royalty revenue recognised by Mirabelle in 20X1.
- Sales-based royalty rate
- 8 %
- Sales of the novel by the licensee in 20X1
- 525,000
- Sales forecast for 20X2
- 900,000