d. a debit to Unearned Franchise 25. On January 1, 20x4 Ethelmea Dulva Dairy Treats, Inc. entered into a franchise agreement name. Etheimea Dulva Dairy Treats had performed all required services by January 1, 20x4, and the franchisee paid the initial franchise fee of P560,000 in full on that date. The franchise agreement specifies that the franchisee must pay a continuing franchise fee of P48,000 annually, of which 20% must be spent on advertising by Ethelmea Dulva Dairy Treats. What 560,000 entry should Ethelmea Dulva Dairy Treats make on January 1, 20x4 to record receipt of the initial franchise fee and the continuing franchise fee for 20x4? a. Cash..... 608,000 Franchise Fee Revenue .. Unearned franchise revenue 48,000 b. Cash....... 608,000 Unearned franchise revenue. 608,000 C. Cash...... 608,000 Franchise revenue. 560,000 Unearned franchise revenue 38,400 Revenue from Continuing Franchise Fees. 9,600 d. Prepaid advertising 9,600 Notes receivable... 608,000 Franchise revenue. 560,000 Revenue from Continuing Franchise Fees ... 48,000 Unearned Franchise Fees ........ 9,600 26. Mean Dones and Jeremie Jane Roldan Inc. charges an initial franchise fee of P920,000, with P200,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments, discounted at 10%, is P545,872. The franchisee has the option to purchase P120,000 of equipment for P96,000, franchise operations already started. The amount of revenue from franchise fees is: P200,000 P745,872 b. P721,872 d. P920,000 a. C