Question: answer it please On January 1, 2018, MAXX SERVICES, INC. signed an agreement authorizing LALLA COMPANY to operate as a franchisee over a 20-year period

answer it please

On January 1, 2018, MAXX SERVICES, INC. signed an agreement authorizing LALLA COMPANY to operate as a franchisee over a 20-year period for an initial franchise fee of P137,500 received when the agreement was signed. LALLA commenced operations on August 1, 2018, at which date all of the initial services required of MAXX SERVICES had been performed. The agreement also provides that LALLA must pay annually to MAXX a continuing franchise fee equal to 5% of the revenue from the franchise. LALLA COMPANY's franchise revenue for 2018 was P1,100,000. Question: For the year ended December 31, 2018, how much should MAXX SERVICES record as revenue fror franchise fees with respect to the LALLA account

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