(9) Flapper Jack's Pancake Restaurants sells franchises for an initial fee of $36,000 plus operating fees of $500 per month. The initial fee covers site selection, training, computer and accounting software, and on-site consulting and troubleshooting, as needed, over the first five years. On March 15, 2017, a customer signed a franchise contract, paying the standard $6,000 down payment with the balance due over five years with interest. Assuming that the collection of the receivable is reasonably assured, the journal entry on March 15, 2017 made by Flapper Jack's Pancake would include a credit to a. Contract liability for $36,000. b. Contract liability for $30,000. c. Franchise fee revenue for $36,000. d. Franchise fee revenue for $6,000. (10) The acquisition costs of property, plant, and equipment do not include: a. Maintenance costs during the first 30 days of use. b. The ordinary and necessary costs to bring the asset to its desired condition and location for use. c. The net invoice price. d. Legal fees related to the purchase of the assets. (11) Recognizing expected losses immediately, but deferring expected gains, is an example of: a. Materiality. b. Conservatism. c. Cost-effectiveness. d. Timeliness. (12) A company has the year end of December 31, 2022. The annual reports of fiscal year 2022 are issued on March 1st of 2023 . Which of the following items is the subsequent event for year 2022 ? a. A change in the estimated useful lives of equipment in January 2023. b. An issuance of bonds on March 31, 2023. c. An acquisition of another company in December 2022 . d. An announcement in January 2023 that the company successfully sold a business division to the other company