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Point 1: Franco Inc. is a publicly traded company in the united states. The company purchased a piece of land for operational usage in 2014. The Acquisition cost for the land was $1million but its current market value as of august 2018 is 1.2 million. In august 2018, franco inc. purchased 500 unites of products for 15,000 (unit cost is the same for each product), sold and shipped 350 unites to a long term customer for a total invoice price of 17500. Customer A paid 10,000 cash and promised to pay the balance in the next two months. In august, another customer, paid 5000 cash to franco for 100 units of products to be shipped to the customer at the end of September.
Question 1: How much revenue should franco recognize for august 2018
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