On April 1, Griffith Publishing Company received 2,358 from Santa Fe, Incorporated for 36-month subscriptions to several different magazines The subscriptions started immediately. What is the amount of revenue that should be recorded by Grifith Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period? Multiple Choice 0. 590. 66 197. 786.

To determine the amount of revenue that Griffith Publishing Company should record for the first year of the subscription, we need to calculate how much of the total subscription payment corresponds to the first year.<br /><br />### Step 1: Understand the problem<br />- Total payment received: **\$2,358**<br />- Subscription duration: **36 months (3 years)**<br />- Revenue is recognized evenly over the subscription period.<br />- The company uses a calendar-year reporting period, and the subscriptions started on **April 1**.<br /><br />### Step 2: Calculate monthly revenue<br />The total revenue is spread evenly over 36 months. Therefore, the monthly revenue is:<br /><br />\[<br />\text{Monthly Revenue} = \frac{\text{Total Payment}}{\text{Subscription Duration}} = \frac{2,358}{36} = 65.50 \, \text{(per month)}.<br />\]<br /><br />### Step 3: Determine the number of months in the first year<br />The subscriptions started on **April 1**, so the first year includes the following months:<br />- April through December = **9 months**.<br /><br />### Step 4: Calculate revenue for the first year<br />The revenue for the first year is:<br /><br />\[<br />\text{Revenue for First Year} = \text{Monthly Revenue} \times \text{Number of Months in First Year}.<br />\]<br /><br />Substitute the values:<br /><br />\[<br />\text{Revenue for First Year} = 65.50 \times 9 = 589.50.<br />\]<br /><br />Rounding to the nearest dollar:<br /><br />\[<br />\text{Revenue for First Year} = 590.<br />\]<br /><br />### Final Answer:<br />The amount of revenue that should be recorded by Griffith Publishing Company for the first year is:<br /><br />**\$590**<br /><br />Correct choice: **\$590**