16. 3 points II On January 3, 2014, Pam Services, Inc. signed an agreement authorizing Cane Company to operate as a franchisee over a 20-year period for an initial franchise fee of P500,000 received when the agreement was signed. Cane commenced operations on July 1, 2014, at which date all of the initial services required of Pam had been performed. The agreement also provides that Cane must pay annually to Pam a continuing franchise fee equal to 5% of the revenue from the franchise. Canes franchise revenue for 2014 was P4,000,000. For the year ended, December 31, 2014, how much should Pam record as revenue from franchise fees in respect of the Cane's franchise?* Mark only one oval. P700,000 P450,000 P500,000 P225,000