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On november 1, 2018, taylor signed a one-year contract to provide handyman services on an as-needed basis to king associates, with the contract to start immediately. king agreed to pay taylor $4,800 for the one-year period. taylor is confident that king will pay that amount, but payment is not scheduled to occur until 2019. taylor should recognize revenue in 2018 in the amount of

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$800 is the answer in this question. The formula to get the revenue of taylor is ($4800 * 2/12)
This arrangement qualifies for revenue recognition over time because the customer consumes the benefit of the seller's service as the seller provides it. Therefore, Taylor would recognize revenue of $800 ($4,800 × 2/12 of the contract duration).
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