Disagree, check out new accounting standards for IP licenses. I didn't know this accounting difference existed until I just found it a few minutes ago and started reading it.
I don't think they can book anything for the second $500,000 yet. They clearly can't count the first as revenue based on the above sentence which is why the accounts receivable is the first $500,000.
I'm sure you'll dig into this, but unless I missed something, I believe I'm correct.
Also, under your premist, there is no recognition of the first $500,000. So how do they book the second $500,000 when the first which was received isn't booked?
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