Answer items 9 and 10. Show your solution.

August 1, P48,000 (AICPA) 9. Servco, a loan servicing agency, paid P60,000 to acquire a three-year right to service P1,000,000 of Banco's loans. Servco will be entitled to a servicing fee 1% of the interest and fees collected during the three-year period. Serveco expects its servicing fees to be: Year 1, P40,000; Year 2, P30,000; and Year 3, P10,000. Which one of the following is the amount of the P60,000 acquisition fee that Servco should amortize during year 1? a. O b. 20,000 c. 30,000 d. 40,000 (AICPA) 10. Synthia Corp. factored P750,000 of accounts receivable to Thomas Co. on Dec. 3, 2003. Control was surrendered by Synthia. Thomas accepted the receivables subject to recourse 2 Chapter 6 1 for nonpayment. Thomas assessed a fee of 2% and retains a holdback equal to 4% of the accounts receivable. In addition, Thomas charged 12% interest computed on a weighted- average time to maturity of the receivables of 51 days over 365 days. The fair value of the recourse obligation is P15,000. Assuming all receivables are collected, Synthia's cost of factoring the receivables would be a. 12,575 b. 15,000 c. 27,575 d. 42,575 (AICPA)