Pita Pal sells fast-food franchises. Pita Pal receives $79,000 from a new franchisee for providing initial training, equipment, and furnishings that together have a stand-alone selling price of $79,000. Pita Pal also receives $37,200 per year for use of the Pita Pal name and for ongoing consulting services (starting on the date the franchise is purchased). Rachel became a Pita Pal franchisee on March 1, 2021, and on May 1, 2021 Rachel had completed training and was open for business. How much revenue in 2021 will Pita Pal recognize for its arrangement with Rachel? Multiple Choice $79,000 $110,000 $0
Pita Pal sells fast-food franchises. Pita Pal receives $79,000 from a new franchisee for providing initial training, equipment, and furnishings that together have a stand-alone selling price of $79,000. Pita Pal also receives $37,200 per year for use of the Pita Pal name and for ongoing consulting services (starting on the date the franchise is purchased). Rachel became a Pita Pal franchisee on March 1, 2021, and on May 1, 2021 Rachel had completed training and was open for business. How much revenue in 2021 will Pita Pal recognize for its arrangement with Rachel? Multiple Choice $79,000 $110,000 $0
Chapter16: Multistate Corporate Taxation
Section: Chapter Questions
Problem 46P
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Why do you divide $37200 in 10 months? My confusion is that the problem says in Mar and in May.
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