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k0ka [10]
3 years ago
14

On January 1, 2020, Franchisee Inc. enters into a contract with Italian Fine Dining Inc. for the right (beginning immediately) t

o operate an Italian Fine Dining restaurant and receive on-going consulting services for a four-year period. The upfront fee of $100,000 also includes specialized equipment for $12,000. The standalone selling price of the franchise services and specialized equipment are $88,000 and $12,000, respectively. The equipment (with a cost of $9,000) was transferred to the franchisee on March 1, 2020. Determine the amount of revenue to recognize for Italian Fine Dining Inc. on December 31, 2020. Group of answer choices
Business
1 answer:
o-na [289]3 years ago
4 0

Answer: $22,000

Explanation:

The total revenue to be recognized by Italian Fine Dinning Inc. is the standalone selling price for the franchise services which is $88,000.

As this contract is for a four year period, Italian Fine Dinning Inc will have to recognize the above revenue over a period of 4 years.

Revenue in December 2020 will therefore:

= 88,000 / 4

= $22,000

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C) supply is perfectly inelastic.

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3 years ago
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inessss [21]

Answer:

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3 years ago
When conducting an independent audit the accountant is to evaluate a company's financial statements and?
Dmitry_Shevchenko [17]

A financial statement audit is the examination of an entity's financial information and accompanying exposures by a liberated auditor.

<h3>What is the main objective of the audit of financial statements?</h3>

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2 years ago
The el was concerned that one possible contamination was benzene. in a well constructed paragraph, explain why benzene was not p
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4 years ago
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hope it's help you ok have a good day

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