the questions are indicated on the picture

1. On July 1, 20x1, Wash Co. grants a franchisee the right to sell Wash Co.'s products in a specific market over a period of 10 years. The franchise contract requires an upfront fee of P800,000, which includes P100,000 for equipment that Wash Co. will provide to the franchisee. The amount reflects the stand-alone selling price of the equipment. In addition, the franchisee will pay a 10% sales-based royalty. Wash Co. has granted similar rights to other franchisees in other locations. Wash Co. regularly undertakes activities that promote the brand name nationally. Wash delivers the equipment to the franchisee on July 15, 20x1. The franchisee starts selling the products on August 1, 20x1 and reports total sales of P600,000 for the year. How much total revenue is recognized from the contract in 20x1? a. 860,000 c. 213,259 b. 760,000 d. 189,167 2. On January 1, 20x1, Baguio Beans, a well-known basketball team, licenses the use of its name and logo to a customer. The customer, an apparel designer, has the right to use Baguio Beans' name and logo on items including t-shirts, caps, mugs and towels for two years. In exchange for providing the license, Baguio Beans will receive a fixed consideration of P200,000 and a royalty of 20% of the sales price of any items using the team name or logo. The customer expects that Baguio Beans will continue to play games and provide a competitive team. The license is transferred to the customer at contract inception. The customer reports sales of P1,000,000 for the year. How much revenue will Baguio Beans recognize from the contract in 20x1? c. 200,000 a. 400,000 d. 100,000 b. 300,000