Question
Rapunzel acquired a franchise to operate a beauty salon from Beautiful Hair for 125,000. She incurred an additional 2000 in legal costs to negotiate the
Rapunzel acquired a franchise to operate a beauty salon from Beautiful Hair for 125,000. She incurred an additional 2000 in legal costs to negotiate the terms with franchisor. In 10 years the contract will be renegotiated. The current contarct also stated that there will be a 1000 annual fee plus a 1% charge based on store annual ravenue.
What ammount of the franchise cost should be capitalized?
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Audit Of Assumptions For The 2009 Pre Budget Report Report By The Comptroller And Auditor General, Session 2009-2010 Hc 83
Authors: National Audit Office
1st Edition
0102963371, 978-0102963373
