JLC Inc., franchisor, entered into a franchise agreement with BEA, franchisee, on July 1, 2020. The total franchise fees agreed upon is P1,100,000, of which P100,000 is payable upon signing and the balance payable in four equal annual installments. It was agreed that the down payment is not refundable, notwithstanding lack of substantial performance of services by the franchisor. When JLC prepares its financial statements on July 31, 2020, the unearned franchise fees to be reported is
JLC Inc., franchisor, entered into a franchise agreement with BEA, franchisee, on July 1, 2020. The total franchise fees agreed upon is P1,100,000, of which P100,000 is payable upon signing and the balance payable in four equal annual installments. It was agreed that the down payment is not refundable, notwithstanding lack of substantial performance of services by the franchisor. When JLC prepares its financial statements on July 31, 2020, the unearned franchise fees to be reported is
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
Problem 43P
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