I". Shaky. Inc. granted a franchise to Stardy for the Angeles area. Stardy was to pay a franchise fee of P100.000 payable in five equal annual installments starting with the payment upon signing of the agreement. The franchise was to pay monthly 1% of gross sales of the preceding month. Should the operation of the outlet prove to be unprofitable in the first year of operations the franchise fee may be cancelled with whatever obligation owing Shaky in connection with the P100000 franchise fee, waived. On the same year of granting the initial franchise fee. the first year operation generated gross sales of P500,000 which is considered to be a profitable operation. For the first year. Shaky earned franchise fee of 1'l'ril'JUf EHSWEF S. lv'larky Inc. charges an initial fee of P920000, 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,S?2. The franchisee has the option to purchase P120,000 of equipment for P96,000. Marky has substantially provided all initial services required and collectability of the payments is reasonably assured. The amount of revenue from franchise fees is TOUT EHSWET 9. On April 1, 20X1 Wagee Co. entered into a franchise agreement with a local businessman. The franchisee paid P240,000 and gave a P160,000, 8% 3-year note payable with interest due annually on March 31. Wagee recorded the P400.00Q initial franchise fee as revenue on April 1, 20X1. On December 31, 20X1, the franchisee decided not to open an outlet under Wagee's name. Wagee canceled the franchisee's note and refunded P128,000, less accrued interest on the note, of the P240,000 paid on April 1. Your answer 9.a The amount of Gain from Repossessed Franchise is Your answer 9.b The amount of interest earned is Your