May 31, 2020, Win grants Bright the right to operate as a franchisee of "2gether Spa" for a nonrefundable upfront fee of P2,400,000 and 3% royalty fee based on Bright's annual sales. Win in return will (1) assist Bright in locating the site, (2) provide supplies and equipment, and (3) allow Bright to use the tradename for 10 years. Bright's income for the year totaled P1,000,000. Win has no performance obligation (PO) remaining as of year end and was able to recognized income of P28,000 from PO#3. Win determined that each PO is separate and distinct from one another and follows PFRS 15 accordingly. 1)How much is the stand-alone selling price of PO#3 if total stand-alone selling price of the three performance obligation is P3,000,000?
On May 31, 2020, Win grants Bright the right to operate as a franchisee of "2gether Spa" for a nonrefundable upfront fee of P2,400,000 and 3% royalty fee based on Bright's annual sales. Win in return will (1) assist Bright in locating the site, (2) provide supplies and equipment, and (3) allow Bright to use the tradename for 10 years. Bright's income for the year totaled P1,000,000. Win has no performance obligation (PO) remaining as of year end and was able to recognized income of P28,000 from PO#3. Win determined that each PO is separate and distinct from one another and follows PFRS 15 accordingly.
1)How much is the stand-alone selling price of PO#3 if total stand-alone selling price of the three performance obligation is P3,000,000?
2) How much is the total revenue recognized by Win for the year ended 2020?
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