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Business, 21.03.2020 03:17 shay8181

North Co. entered into a franchise agreement with South Co. for an initial fee of $50,000. North received $10,000 at the agreement’s signing. The remaining balance was to be paid at a rate of $10,000 per year, beginning the following year. North’s services per the agreement were not complete in the current year. Operating activities will commence next year. What amount should North report as franchise revenue in the current year?
A. $10,000
B. $50,000

C. $20,000

D. $0

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North Co. entered into a franchise agreement with South Co. for an initial fee of $50,000. North rec...

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