Roan Co enters into a contract with a major chain of retail stores. The customer...
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Roan Co enters into a contract with a major chain of retail stores.The customer commits to buy at least $40 of products over the next 12months. The terms of the contract require Roan Co to make apayment of $4m to compensate the customer for changes that it will needto make to its retail stores to accommodate the products.By 31 December 2021, Roan Co has transferred products with asales value of $9m to the customer.
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How much revenue should be recognized by Roan Co in theyear ended 31 December 2021?
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