Mean Dones and Jeremie Jane Roldan Inc. charges an initial franchise fee of P920,00, with P200,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments, discounted at 10%, is P545,872. Franchise operations already started and no future services are required to be performed. The amount of revenue from franchise fee is?
Mean Dones and Jeremie Jane Roldan Inc. charges an initial franchise fee of P920,00, with P200,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments, discounted at 10%, is P545,872. Franchise operations already started and no future services are required to be performed. The amount of revenue from franchise fee is?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 2RE: Yankee Corp. agrees to provide Albany Company 24 months of coaching services. The contract sets the...
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Mean Dones and Jeremie Jane Roldan Inc. charges an initial franchise fee of P920,00, with P200,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments, discounted at 10%, is P545,872. Franchise operations already started and no future services are required to be performed. The amount of revenue from franchise fee is?
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