In Tolan's 2014 income statement, royalty revenue amounts to $103,000. Explanation: The royalty revenue for Tolan in the 2014 income statement will include the royalties for January to June paid in September 2014, and those from July to December to be received in March 2015. The amount received for the first half of the year totals $98,500, which applies to that time period. The royalty, calculated as 15% of sales, leads to an estimate of $30,000 for the latter half, producing an additional $4,500. Consequently, the overall royalty income for 2014 totals $103,000.
