Reference no: EM132943948

Question - A franchising company sells exclusive franchise for P15,000,000 for 20 years. For this fee, franchisees receive training, assistance on site selection, assistance during construction phase, and promotional considerations for the grand opening. There is also a P300,000 per month continuation fee for advertising and accounting services after the store is open for business. On April 20, 2019, franchisor signed an agreement and sold a franchise to the franchisee for the standard fee. The franchisor received a 20% down payment and 10%, four-year interest-bearing note for the balance. On July 04, 2019, the franchise outlet had a grand opening. The franchisor had met all the requirements for the services rendered such as performance obligations related to franchise rights, training and equipment. On December 15, 2019, franchisor received P300,000 annually for the continuous services rendered. Find the amount of revenue from franchise fee on April 20, 2019?