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Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $750,000 in exchange for satisfying the following separate

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Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $750,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a Monitor Muffler retall establishment in an exclusive sales territory. (2) franchisees receive initial training and certification as a Monitor Mechanic, and B) franchisees receive a Monitor Muffler bullding and necessary equipment. The stand-alone selling price of the Initial training and certification is $18,000, and $570,000 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 $90,000 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 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 arrangement with Perkins? (Ignore any interest on the note receivable) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffler retail establishment? Stand-alone seling price Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 15 What journal entry would Monitor record on July 1, 2021, to reflect the sale of a franchise to Dan Perkins? (If no entry transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the sale of a franchise to Dan Perkins on July 1, 2021. nt rences Note: Enter debits before credits General Journal Date July 01, 2021 Debit Credit Record entry Clear entry View general journal nstruct and equip Perkins's building and train and certify Perkins by September 1, and Perkins's five-year right to operate monitor Muffler establishment will commence on September 1 as well. required: - What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffle -stablishment? 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 arrangem Perkins? (Ignore any interest on the note receivable.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 receivable.) (Do not round intermediate calculations.) Total revenue

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