Unformatted text preview: Clement Corp., a pharmaceutical manufacturer, licensed a drug patent to Global Corp. for royalties of 5% of drug sales. Royalties are payable twice yearly on April 15
for sales from July through December of the previous year and on October 15 for January - June same-year sales. In year 8, Global paid royalties of $20,000 and
$25,000 on April 15 and October 15, respectively. In response to Global's estimate of July - December sales of the drug, Clement correctly recognized $43,000 in
royalty revenue in its financial statements dated December 31, year 8. What was Global's sales estimate for the second half of year 8?
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- Spring '16