On January 1, 20x1, Marc Company enters into a contract with a customer to transfer a license. franchise fee is P200,000, payable as follows: 20% cash down payment upon signing of the contract balance is payable in four (4) equal annual installments starting December 31, 20X1. The ap discount rate is 10%. The contract also requires Marc Company to transfer equipment to the customer. The equipment has P30,000 and a stand-alone selling price of P50,000. The license has a stand-alone selling price of P3 Marc Company regularly sells the license and the equipment separately. The equipment is transferred customer on January 15, 20x1, while the license is transferred to the customer on February 1, 20x1. REQUIRED:
On January 1, 20x1, Marc Company enters into a contract with a customer to transfer a license. franchise fee is P200,000, payable as follows: 20% cash down payment upon signing of the contract balance is payable in four (4) equal annual installments starting December 31, 20X1. The ap discount rate is 10%. The contract also requires Marc Company to transfer equipment to the customer. The equipment has P30,000 and a stand-alone selling price of P50,000. The license has a stand-alone selling price of P3 Marc Company regularly sells the license and the equipment separately. The equipment is transferred customer on January 15, 20x1, while the license is transferred to the customer on February 1, 20x1. REQUIRED:
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter9: Operating Activities
Section: Chapter Questions
Problem 18PC
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