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(in January 1, El. TELT Co. entered into a franchise agreement with By Inc.. franchisee. The initial franchise fees agreed upon is P1. 520. ooo,
(in January 1, El. TELT Co. entered into a franchise agreement with By Inc.. franchisee. The initial franchise fees agreed upon is P1. 520. ooo, of which PTED. ooo is payable upon signing and the balance to be covered by a non interest bearing note payable in four equal installments starting next year. Initial seryices' out- of pocket costs of FEED. 7'64 and P53. 39? were incurred for direct expenses and indirect expenses respectiiurely Preyailing market rate is 9%. PM\" factor is 1239?. The collectability of the note is not reasonably assured. A 5% continuing franchise fee is to be paid monthly by By based on its monthly gross sales. Franchisee commenced operations on October 1r Bold. Gross sales for the first months amounted to FEET. . How much was the net income for the year ended December 1. Edit}
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