What is the amount of the contract revenue

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Reference no: EM132797353

Problem 1: On January 1, 2020, ABC Co. enters into a contract with a customer to transfer a license for a fixed fee of P200,000 payable as follows: 20% upon signing of contract and balance due in 4 equal annual installments starting December 31, 2020 (the discount rate is 10%) . ABC incurs direct contract cost of P60,000 in 2020. ABC transfers the license to the customer on January 1, 2021. The license provides the customer with the right to use ABC's intellectual property as it exists at grant date. What is the amount of the contract revenue on 2021. (round off PV in four decimal places ex: 1.23456 to 1.2346)

Reference no: EM132797353

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