CASE 1On January 1, 20x1, Marc Company enters into a contract with a customer to transfer a license. The initialfranchise fee is P200,000, payable as follows: 20% cash down payment upon signing of the contract, and thebalance is payable in four (4) equal annual installments starting December 31, 20X1. The appropriatediscount rate is 10%.The contract also requires Marc Company to transfer equipment to the customer. The equipment has a cost ofP30,000 and a stand-alone selling price of P50,000. The license has a stand-alone selling price of P38,000.Marc Company regularly sells the license and the equipment separately. The equipment is transferred to thecustomer on January 15, 20x1, while the license is transferred to the customer on February 1, 20x1.REQUIRED: Compute the following:1. Total transaction price2. Transaction price allocated to license3. Transaction price allocated to equipment4. Franchise fee revenue

The license is sold here with the down payment and four installments. The Franchise fee was…

On January 1, 20x1, Marc Company enters into a contract with a custome franchise fee is P200,000, payable as follows: 20% cash down payment upo balance is payable in four (4) equal annual installments starting Decen discount rate is 10%. The contract also requires Marc Company to transfer equipment to the custo P30,000 and a stand-alone selling price of P50,000. The license has a stand Marc Company regularly sells the license and the equipment separately. The customer on January 15, 20x1, while the license is transferred to the custome REQUIRED: Compute the following: 1. Total transaction price

On January 1, 20x1, Marc Company enters into a contract with a custome franchise fee is P200,000, payable as follows: 20% cash down payment upo balance is payable in four (4) equal annual installments starting Decen discount rate is 10%. The contract also requires Marc Company to transfer equipment to the custo P30,000 and a stand-alone selling price of P50,000. The license has a stand Marc Company regularly sells the license and the equipment separately. The customer on January 15, 20x1, while the license is transferred to the custome REQUIRED: Compute the following: 1. Total transaction price

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 7C: On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial...

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