On April 1, 2020, DEF Corporation entered into a franchise agreement. This will allow DEF to...

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On April 1, 2020, DEF Corporation entered into a franchise agreement. This will allow DEF to collect P200,000 cash as down payment and a 5-year, 8%, P1,000,000 note. The effective rate equals nominal rate for this note. The franchise allows the franchisee to use DEF Corporation's intellectual property and any updates to those over a period of 10 years. Required: BAGUIO CITY 10. Contract liability as of Dec. 31, 2020 11. Total carrying value of the receivables from the customer as of Dec. 31, 2020 On April 1, 2020, DEF Corporation entered into a franchise agreement. This will allow DEF to collect P200,000 cash as down payment and a 5-year, 8%, P1,000,000 note. The effective rate equals nominal rate for this note. The franchise allows the franchisee to use DEF Corporation's intellectual property and any updates to those over a period of 10 years. Required: BAGUIO CITY 10. Contract liability as of Dec. 31, 2020 11. Total carrying value of the receivables from the customer as of Dec. 31, 2020

Answer rating: 100% (QA)

To determine the contract liability as of December 31 2020 and the total carrying value of the recei... View the full answer