rporation is a franchisor. On Dec. 31, 2020, it entered into a franchise agreement that requires the franchisee to issue a non-interest bearing P2,000,000 note. The note will be settled in 4 equal annual collections starting Dec. 31, 2020. ABC charges 8% on notes to customers with similar credit background as the franchisee. The franchisee complied with the payment terms. The franchise including continuing services starts on Jan. 1, 2021 and ends on Dec. 31, 2026. How much total revenue shou
rporation is a franchisor. On Dec. 31, 2020, it entered into a franchise agreement that requires the franchisee to issue a non-interest bearing P2,000,000 note. The note will be settled in 4 equal annual collections starting Dec. 31, 2020. ABC charges 8% on notes to customers with similar credit background as the franchisee. The franchisee complied with the payment terms. The franchise including continuing services starts on Jan. 1, 2021 and ends on Dec. 31, 2026. How much total revenue shou
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 25P
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ABC Corporation is a franchisor. On Dec. 31, 2020, it entered into a franchise agreement that requires the franchisee to issue a non-interest bearing P2,000,000 note. The note will be settled in 4 equal annual collections starting Dec. 31, 2020. ABC charges 8% on notes to customers with similar credit background as the franchisee. The franchisee complied with the payment terms. The franchise including continuing services starts on Jan. 1, 2021 and ends on Dec. 31, 2026. How much total revenue should ABC Corporation report for the year 2021?
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