1. Under PFRS15, what is the revenue on the initial franchise fees for the year ended December 31, 2020?

a. 1,191,652

b. 1,866,921

c. 3,222,172

d. 3,972,172

B. Under PFRS 15, what is the total revenue as of December 21, 2020?

a. 1,566,652

b. 2,241,921

c. 2,564,138

d. 4,669,389

a. Zero

b. 64,402

c. 66,402

d. 75,000

A. Under PFRS 15, what is Shamrocks net income for 2020 in connection with the consignment arrangement?

a. 20,520

b. 21,240

c. 22,560

d. 23,420

B. Under PFRS 15, what is 24/7s net remittance to Shamrock on December 31, 2020?

a. 41,140

b. 42,240

c. 44,260

d. 45,320

On January 1, 2020, AP Corp. granted a franchise to Mr. X with an initial franchise fee of P5,000,000. The terms of the payment were $750,000 was considered as down payment and the balance was shouldered by a non- interest-bearing note payable in five equal annual installments starting at the end of the year, December 31, 2020. The prevailing rate for similar note was 10%. (PV factor of 5 periods is 3.79079). By December 31, 2020, the franchise generated gross sales amounted to P2,500,000. The franchise agreement will expire on December 31, 2024. As part of the franchise agreement, the following were also agreed upon: a. AP Corp. will allow Mr. X to use its trade name until the expiration of the contract and will have a stand- alone selling price of P500,000. b. AP Corp. will install and deliver the store equipment and will have a stand-alone selling price of P300,000. AP Corp. will deliver 10,000 units of merchandise and will have a stand-alone selling price of P200,000. d. Continuing fee of 15% based on sales. C. As of December 31, 2020, AP Corp. had installed and delivered the equipment, but only 3,500 units of merchandise were delivered. Under PFRS 15, what is the revenue from initial franchise fees for the year ended December 31, 2020? Coney Island, Inc. charges an initial franchise fee of P75,000 for the right to operate as a franchisee of Coney Island. Of this amount, P25,000 is collected immediately. The remainder is collected in four equal annual installments of P12,500 each. These installments have a present value of P41,402. As part of the total franchise fee, Frozen Delight also provides training (with a fair value of P2,000) to help franchisees get the store ready to open. The franchise agreement is signed on April 1, 2020, training is completed, and the store opens on July 1, 2020. The amount of total revenue from training and franchise on July 1, 2020 is? On December 1, 2020, Shamrock Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread, for tasting- purposes, to 24/7 retail store on a consignment arrangement. The retail store does not take title to the products and has no obligation to pay Shamrock Inc. until they are sold to the final costumers. Any unsold products, excluding those that are lost or damages, can be returned to Shamrock Inc. and the latter has discretion to call products back or transfer products to another customer. Shamrock manufacturers the product at a cost of P5,000 per box of Otap bread and P100 per pack of sample bread. There is freight collect of P2,000 for the delivery of 10 boxes of Otap bred to 24/7 but not for the sample bread. The selling price of the Otap product is P8,000 per box for cash sales and P10,000 per box for credit sales with term of 2/10 n/30. The retail store is entitled to a 5% commission on cash sales and 10% commission on net credit sales already collected. The retail store has the right to be reimbursed for the freight it incurred for its delivery to final customers. Shamrock Inc. provides bad debt expense at an estimate of 8% based on ending receivables. For the month ended December 31, 2020, 24/7 retail store was able to sell to final consumers 3 boxes of Otap bread on cash basis and 5 boxes of Otap bread on account. There is freight prepaid of P3,000 for the delivery of boxes of Otap bread to final consumers. Also, five packs of sample bread were consumed by final costumers during the tasting period. The costumers on account paid to 24/7 three out of five boxes sold on credit within the discount period but the remainder continued to be unpaid as of December 31, 2020. On December 31, 2020, 24/7 Retail Store made its net remittance to Shamrock Inc