20. Flor entered into a franchise agreement with Ram. As per agreement on July 3 points 1, 20x4, Ram is to pay Flor an up-front franchise fee of P1,000,000 and continuing franchise fees of P50,000 over next four years. Cost of initial franchise services rendered by Flor's during the year is P250,000. The services were substantial, and it estimates the cost of subsequent annual services to be P10,000. Ram paid the annual franchise fee for 20x5, and Flor's rendered the services for the year. In its December 31, 20x5 income statement, the amount of realized franchise fee revenue to be reported by Flor's is: * Mark only one oval. A. P40,000 B. P250,000 C. P50,000 D. PO