Identifying Performance Obligations and Recording Revenue from Franchise Pights The Krispy Donuts franchise has agreements with 100 franchisees across the United States to operate bakeries. On jamusry 1, Krispy Donuts grants a franchisee the right to operate a bakery in Minneapolis. Minnesota using the Krispy Donut's brand name, recipe, and other business concepts for a price of $200,000, On january 1, the franchisee made a down payment to the franchisor of $20,000 and paid the remaining $180,000 upfront fee on March 31 . In exchange for the $200,000 payment, the franchisee received franchise rights, which include benefits of a nationat adverthing campaign over the ten yeat period (starting on the contract date) to promote the brand name of Krispy Dorucs. The 5200.000 payment atso provides kitchen equipment from the franchisor (fair value of 524.0001, and upfront training and assistance in setting up the franchise thar yalue of $8,0001. The fraining and assistance will be performed before the opening of the bakery. Equipment was delivered on April 1, and had a cost of $16.000. Kaispy bonuts uses the residual method to measure the stanidalone yalue; of the franchise rights. The bakery opened on yune 1. a. How many performance obligations are inchuded in the franchise arrangement? b. When does the franchisor recognize revenue for exch performanice obligation? c. Prepare the journal entries for the Krispy Donuts franchisor on January 1, March 31, April 1, and june 1. d. Assuming the franchisor has a December 31 year end, prepare any journal entries required on December 31 . Please answer all parts of the