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Case: Cecilia Beaux entered into a franchise agreement with Old Towne Market. The franchise agreement has an initial term of 10 years although Cecilia has the option to renew the agreement for an unspecified period of time. She incurred the following costs in setting up her new business between January 1 and October 31, 2019:
Cecilia opened the store on November 1, 2019. For the year ended December 31, 2019, how much in expenses would be recognized related to the above costs? (Assume Old Towne Market uses the straight-line method of depreciation.)
Cecilia Beaux entered into a franchise agreement with Old Towne Market. The franchise agreement has an initial term of 10 years although Cecilia has the option to renew the agreement for an unspecified period of time. She incurred the following costs in setting up her new business between January 1 and October 31, 2019:
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