On January 1, 2000, Max signed an agreement covering five years to operate as a franchisee of Xim Corporation for an initial franchise fee of 50,000. The amount of 10,000 was paid when the agreement was signed and the balance is payable in 5 annual payments of 8,000 each, beginning January 1, 2001. The agreement provides that the down payment is non-refundable and that no future services are required of the franchisor once the franchise commences operations on April, 1, 2000. As of April 1, 2000, initial services of 20,000 was incurred by the franchisor. Max 'credit rating indicates that he can borrow money at 12% for loan of this type.

1. What is the amount of franchise revenue on January 1, 2000 ?
2. What is the amount of net income on April 1, 2000?