In its 2021 annual report to shareholders, Ank-Morpork Times Inc. included the following disclosure:
Revenue Recognition
O Advertising revenue is recognized when advertisements are published, are broadcast, or when placed on the Company's websites, net of provisions for estimated rebates, credit and rate adjustments and discounts.
O Circulation revenue includes single copy and home-delivery subscription revenue. Single copy revenue is recognized based on date of publication, net of provisions for related returns. Proceeds from home-delivery subscriptions and related costs, principally agency commissions, are deferred at the time of sale and are recognized in earnings on a pro rata basis over the terms of the subscriptions.
O Other revenue is recognized when the related service or product has been delivered.
Also, the following information on its current liabilities was included in its comparative balance sheets:
CURRENT LIABILITIES 2021 2020
Commercial paper outstanding $152,300,000 $285, 251,000
Accounts payable $164,950,000 $168,552,000
Accrued payroll and other related liabilities $ 75,299,000 $120,983,000
Accrued expenses $154,867,000 $184,748,000
Accrued income taxes $219, 220,000 $ 9,792,000
Deferred subscription revenue $ 55, 706,000 $ 75,385,000
Current portion of long-term debt and lease obligations $ 2,474,000 $ 2,539,000
Total current liabilities $824,816,000 $847,250,000
Required:
1. Assuming that Ank-Morpork Times Inc. collected $434,000,000 in cash for home-delivery subscriptions during fiscal year 2021, what amount of revenue did it recognize during 2021 from this source? Show the relevant T-account information to support your answer.
