Pita Pal sells fast-food franchises. Pita Pal receives $79,000 from a new franchisee for providing initial training, equipment, and furnishings that together have a stand-alone selling price of $79,000. Pita Pal also receives $37,200 per year for use of the Pita Pal name and for ongoing consulting services (starting on the date the franchise is purchased). Rachel became a Pita Pal franchisee on March 1, 2021, and on May 1, 2021 Rachel had completed training and was open for business. How much revenue in 2021 will Pita Pal recognize for its arrangement with Rachel? Multiple Choice $79,000 $110,000 $0

Pita Pal sells fast-food franchises. Pita Pal receives $79,000 from a new franchisee for providing initial training, equipment, and furnishings that together have a stand-alone selling price of $79,000. Pita Pal also receives $37,200 per year for use of the Pita Pal name and for ongoing consulting services (starting on the date the franchise is purchased). Rachel became a Pita Pal franchisee on March 1, 2021, and on May 1, 2021 Rachel had completed training and was open for business. How much revenue in 2021 will Pita Pal recognize for its arrangement with Rachel? Multiple Choice $79,000 $110,000 $0

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 52P

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