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Pasta inn charges an initial fee of $ 15670000 for a franchise, with 314000 paid when the agreement is signed and balance in four annual payments. The present value of the annual payments, discounted at 10%, is $ 1004800. The franchisee has the right to purchase $90000 of kitchen equiment and supplies for $ 41800. An additional part of the initial free is for advertising to be provided by Pasta inn during the next five years. The value of the advertising is $ 1500 a month. Collectibility of the payments is reasonably assured and Pasta inn has performed all the Initial services required by the contract.
Prepare the entry to record the initial franchise fee.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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