What is the amount of total income to be reported

Reference no: EM132736368

Question: On January 1, 2020, beng Inc.granted a franchise to Mr. lucky to sell Mr. beng products. The agreement provides the following terms:

a. Initial franchise fee in the amount of 15,000,000 payable at 5,000,000 down payment on January 1, 2020 and the balance payable in five equal annual installments every December 31. Mr. lucky issued 5-year non-interest bearing note. The prevailing rate is 10% and implicit rate is 12%.

b. Contingent franchise fee equal to 5% of the sales revenue of Mr. lucky. AS of December 31, 2020, beng Inc has not yet performed substantially all material services or conditions required of the franchise contract. For the year ended December 31, 2020, lucky reported sales revenue in the amount of 1,000,000. What is the amount of total income to be reported by beng for the year ended December 31, 2020?

Reference no: EM132736368

Questions Cloud

Prepare the journal entry to record the bad debt write-off : Brian Bazaar had sold goods on credit in September 2019 for $5500 (including 10% GST). Prepare the journal entry to record the bad debt write-off

Which crew is the most productive : A 2-man crew made 180 widgets in 10 hours, while a 3-man crew made 120 widgets in 4 hours, and a 5-man crew made 110 widgets in 2 hours.

Describe how you will conduct your study : Construct a research proposal that will guide you in undertaking a research project - What research methodologies will be used to gather data from primary

Make journal entries for mikakos ltd to record transactiions : Make the journal entries for Mikakos Ltd to record this transaction - 30 June 2020 End of reporting period A$1= 0.60 pounds

What is the amount of total income to be reported : Contingent franchise fee equal to 5% of the sales revenue of Mr. lucky. AS of December 31, 2020, beng Inc has not yet performed substantially all material.

Conceptual-theory-empirical formalization : Conceptual-Theory-Empirical (C-T-E) formalization is a way to analyze research by systematically testing or generating theory.

Determine the amount of ending inventory : The net realizable value of each of these products at year-end was cameras $77, Determine amount of ending inventory at lower-of-cost-or-net realizable value

What is the breakeven quantity of the firm : A function has fixed cost of 80000 birr associated with the manufacture of dresses that cost 25 birr to produce. The firm cells all the dresses it produces.

Statistics With R Programming Project : You can find an R package that we have not discussed in class and show how to use it and why it is interesting to biologists.

User Account

All Pages