What is the carrying amount of the franchise

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Problem 1: Weilerstein Company entered into a franchise agreement to sell the products of a franchisor for 20 years. The agreement provides that Weilerstein Company shall pay an initial fee of P24,000,000 in cash upon the signing of the agreement at the beginning of the current year. Further, the agreement provides that the franchisee shall pay a periodic fee of 5% based on the quarterly gross sales. During the current year, the company realized gross quarterly sales of P25,000,000.What is the carrying amount of the Franchise at the end of second year?

Reference no: EM132703176

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