Chapter 7 Homework Navigation 3 4 || 5 6 7 8 9 10 11 12 13 Finish attempt ... eBook Print Question 11 Not yet answered Marked out of 0.77 P Flag question Recognizing Franchise Revenue Pizza Extravaganza grants franchisees the right to operate a pizzeria using the company's name, menu items, dcor, and general operational program. A franchisee pays a $250,000 initial fee for management training, and extensive planning documents. After the franchise opens, the franchisee can choose to sign an annual agreement and pay a fee of $75,000 per year for additional training, accounting services, and real-time consulting services. A new franchise agreement is signed on June 1, 2020, and the new pizzeria opened up for business on December 31, 2020. A franchisee signed up for a year of consulting services on December 31, 2020. a. When is revenue recognized for the $250,000 initial fee? b. When is revenue recognized for the $75,000 consulting fee? Chapter 7 Homework Navigation 1 | 2 3 4 5 || 6 7 | 8 9 | 10 | 11 | 12 13 Finish attempt ... 9 eBook A Print Question 11 Not yet answered Marked out of 0.77 Flag question Recognizing Franchise Revenue Pizza Extravaganza grants franchisees the right to operate a pizzeria using the company's name, menu items, dcor, and general operational program. A franchisee pays a $250,000 initial fee for management training, and extensive planning documents. After the franchise opens, the franchisee can choose to sign an annual agreement and pay a fee of $75,000 per year for additional training, accounting services, and real-time consulting services. A new franchise agreement is signed on June 1, 2020, and the new pizzeria opened up for business on December 31, 2020. A franchisee signed up for a year of consulting services on December 31, 2020. a. When is revenue recognized for the $250,000 initial fee? Over time: Recognize evenly over 2021. Point in time: Recognize revenue fully on December 31, 2020. More information required. ng fee? Previous Save Answers Next > Chapter 7 Homework Navigation 1 | 2 3 4 5 | 6 | 7 || 8 9 | 10 | 11 | 12 || 13 Finish attempt ... eBook A Print Question 11 Not yet answered Marked out of 0.77 Flag question Recognizing Franchise Revenue Pizza Extravaganza grants franchisees the right to operate a pizzeria using the company's name, menu items, dcor, and general operational program. A franchisee pays a $250,000 initial fee for management training, and extensive planning documents. After the franchise opens, the franchisee can choose to sign an annual agreement and pay a fee of $75,000 per year for additional training, accounting services, and real-time consulting services. A new franchise agreement is signed on June 1, 2020, and the new pizzeria opened up for business on December 31, 2020. A franchisee signed up for a year of consulting services on December 31, 2020. a. When is revenue recognized for the $250,000 initial fee? b. When is revenue recognized for the $75,000 consulting fee? Over time: Recognize evenly over 2021. Point in time: Recognize revenue fully on December 31, 2020. More information required.