Exercise 6-17 (Static) Franchises; residual method [ L06-6, 6-7] Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $600,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a Monitor Muffler retail establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a Monitor Mechanic, and (3) franchisees receive a Monitor Muffier building and necessary equipment. The stand-alone selling price of the initial training and certification is $15,000, and $450,000 for the building and equipment. Monitor estimates the stand-alone selling price of the five-year right to operate as a Monitor Muffler establishment using the residual approach. Monitor received $75.000 on July 1, 2021, from Perkins and accepted a note receivable for the rest of the franchise price. Monitor will construct and equip Perkins's building and train and certify Perkins by September 1, and Perkins's five-year right to operate as a Monitor Muffler establishment will commence on September 1 as well. Required: 1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Mufller retail establishment? 2. What journal entry would Monitor record on July 1, 2021, to reflect the sale of a franchise to Dan Perkins? 3. How nfuch revenue would Monitor recognize in the year ended December 31,2021 , with respect to its franchise arrangement with Perkins? (Ignore any interest on the note receivable.) Answer is not complete. Complete this question by entering your answers in the tabs below. What journal entry would Monitor record on July 1, 2021, to reflect the sale of a franchise to Dan Perkins? (If no entry is Whatired for a transaction/event, select "No journal entry required" in the first account field.) Monitor Muffler establishment will com and train and certify Perkins by September Required: 1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as o Monitor Muffler retail establishment? 2. What journal entry would Monitor record on July $,2021, to reflect the sale of a franchise to Dan Perkins? 3. How much revenue would Monitor recognize in the year ended December 31,2021 , with respect to its franchise arrangement with Perkins? (lgnore any interest on the note recelvable.) Answer is not complete. Complete this question by entering your answers in the tabs below. What amount would Monitor colculate os the stend-alone selling price of the five-year right to operate as a Monitor Mumfer retall establishment? Monitor recelved 575,000 on July 1, 2021 from construct and equip Perkins's building and train Ferkins ond accepted a note receivable for the rest of the franchise price. Monitor will Monitor Muffler establishment will commence on Sefertify Perkins by September 1, and Perkins's five-year right to operate as a Required: 1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffler retail establishment? 2. What journal entry would Monitor record on July 1, 2021, to reflect the sale of a franchise to Dan Perkins? 3. How much revenue would Monitor recognize in the year ended December 31,2021 , with respect to its franchise arrangenent with Perkins? (lgnore any interest on the note recelvable.) Answer is not complate. Complete this question by entering your answers in the tabs below. What journal entry would Monitor record on July 1, 2021, to refiect the Bale of a franchise bo Dan Perains? (ar no entry is reguired for a tranciectionvevent, select "No journal entry requirnd in the finh acosont feld.) Complete this question by entering your answers in the tabs below. How much revenue would Monitor recognize in the year ended December 31,2021 , with respect to its franchise arrangement with Perkins? (Ignore any interest on the note recelvable.) (Do not round intermediate calculations.)