PROBLEM 5 XYZ Company charges an initial franchise fee of P50,000 for a new franchise, providing the initial training, equipment and furnishings that have a stand-alone price of P50,000. The company also receives P30,000 per year for the continued use of the name and for continuing services to be provided by XYZ from the purchase of the franchise. A franchisee purchased the franchise on July 1, 20x8 and started operations on August 1, 20x8 after training was completed. How much revenue will be recognized by XYZ in 20x8? RUBRICS 5 POINTS EACH - CORRECT ANSWERS WITH SOLUTION