Monitor recelved $86,000 on July 1, 2024, from Perkins and accepted a note recelvable for the rest of the franchise price. Monitor will construct and equlp Perkins's buliding 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 retall estabilishment? 2. What joumal entry would Monitor record on July 1, 2024, to reflect the sale of a franchise to Dan Perkins? 3. How much revence would Monitor recognize in the year ended December 31, 2024, with respect to its franchise arrangement with Perkins? (lgnore any interest on the note recelvable.) Complete this question by entering your answers in the tabs below. What amount would Monitor calcutate as the stand-alone selling price of the five-year right to operate as a Monitor Mufiler retail establishrnent? What journal entry would Monitor record on July 1, 2024, to reflect the sale of a franchise to Dan Perkins? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the sale of a franchise to Dan Perkins on July 1, 2024. Note: Enter debits before credits. operate as a Monitor Muffler retall establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a Monitor Mechanic, and (3) franchisees recelve a Monitor Muffler bullding and necessary equipment. The stand alone selling price of the initial training and certification is $17,200, and $538,000 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 recelved $86.000 on July 1, 2024, from Perkins and accepted a note recelvable for the rest of the franchise price. Monitor will construct and equip Perkins's bullding 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, 2024, to reflect the sale of a franchise to Dan Perkins? 3. How much revenue would Monitor recognize in the year ended December 31,2024 , 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. How much revenue would Monitor recognize in the year ended December 31, 2024, with respect to its franchise arrangement with Perkins? (Ignore any interest on the note receivable.) Note: Do not round intermediate calculations
