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On Jan. 1, 2020, ABC Corporation entered into a franchise agreement with a P570,000 cash payment as initial franchise fee. The fee covers the initial services with the following stand- alone prices. Location identification Market Study P 150,000 200,000 APLA Manager Training P 50,000 Employee Training ARC charges a mark-un on cost of 25% when it computes the 200,000

On Jan. 1, 2020, ABC Corporation entered into a franchise agreement with a P570,000 cash payment as initial franchise fee. The fee covers the initial services with the following stand- alone prices. Location identification Market Study P 150,000 200,000 APLA Manager Training P 50,000 Employee Training ARC charges a mark-un on cost of 25% when it computes the 200,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2020, ABC Corporation entered into a franchise agreement with a P570,000 cash payment as initial franchise fee. The fee covers the initial services with the following stand- alone prices. Location identification Market Study P 150,000 Manager Training APIZ Employee Training P 50,000 200,000 ABC charges a mark-up on cost of 25% when it computes the stand-alone prices of all its services. On Jan 31, 2020, ABC 200,000 a has completed the location identification and market study. How much is the gross profit from the franchise to be reported warning with mandatory dotyvolalain tensprejto in the income statement for January 2020?spension to dismissal/ non-readmission with
Transcribed Image Text:On Jan. 1, 2020, ABC Corporation entered into a franchise agreement with a P570,000 cash payment as initial franchise fee. The fee covers the initial services with the following stand- alone prices. Location identification Market Study P 150,000 Manager Training APIZ Employee Training P 50,000 200,000 ABC charges a mark-up on cost of 25% when it computes the stand-alone prices of all its services. On Jan 31, 2020, ABC 200,000 a has completed the location identification and market study. How much is the gross profit from the franchise to be reported warning with mandatory dotyvolalain tensprejto in the income statement for January 2020?spension to dismissal/ non-readmission with
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