Debbie acquired a franchise to operate a donut shop from dollar donuts, inc., for $100,000. she incurred an additional $4,000 in

Social: The families are negatively affected by the war.
Technology: Weapons and other technologies are used as part of the war.
Economic: The economy of the countries involved and other nearby countries can be negatively or positively affected.
Environmental: There is pollution due to waste derived from weapons.
Political: Most wars are the result of political conflicts.
Legal: There are specific international rules that regulate wars.
Ethical: The use of weapons against a population rises ethical concerns and dilemmas.

Question

3 years ago

11

Debbie acquired a franchise to operate a donut shop from dollar donuts, inc., for $100,000. she incurred an additional $4,000 in

legal costs to negotiate the terms with the franchiser. in five years, the franchise contract will be renegotiated. the current contract also states that there will be a $3,000 annual fee plus a two percent charge based on the store's annual revenue, which is expected to average 90,000 per year. what is the franchise cost that should be capitalized? $100,000 $104,000 $88,000 $92,000

Business

1 answer:

MissTica · Answer 1 · 2022-01-21T14:07:03+03:00

The franchisee cost that should be capitalised, will be the total amount incurred to acquire the franchisee , which is $100000, the legal fees of $4000 will also be added to the amount as it has been incurred in assciation with the acquisition thus the total cost which should be capitalised will be $100000+$4000 which comes to a total of $104000.