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How much is the initial measurement of the intangible asset

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Question - On January 1, 20x1, Devjo Co. bought a franchise from McDo Co. The franchise requires an initial fee of 15,000,000 payable as follows. 5,000,000 down payment on contract date and the balance in five equal annual installments starting one year from contract date plus 4% interest on the outstanding principal balance. The current market rate as of contract date is 12%. How much is the initial measurement of the intangible asset?

Reference no: EM132634827

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