1. AAA Company, a franchisor, charges an initial franchise fee of P750,000 payable P500,000 cash upon signing the franchise agreement and the balance, evidenced by a non-interest-bearing note, is payable in 5 semi-annual installments of P50,000. The franchisor agrees to conduct a market studies, to find a suitable location and to train employees. On July 1, 2020, an agreement was signed between AAA and BBB Company, a franchisee. Total cost incurred by the franchisor in the performance of the services as of December 31, 2020 is P150,000. The first installment on the note was made on December 31, 2020. Additional cost incurred in January 2021 is P75,000. The franchise outlet opened on February 15, 2021. The management of BBB estimated that they can borrow at the rate of 10%. Determine the following: a. Revenue to be recognized in 2020 b. Income to be recognized in 2020 C. Entries to record the transactions in 2020