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On january 2, fafnir co. purchased a franchise with a finite useful life of 10 years for $50,000. an additional franchise fee of 3% of franchise operation revenues must be paid each year to the franchisor. revenues from franchise operations amounted to $400,000 during the year, and the pattern of consumption of benefits of the franchise is not reliably determinable. in its december 31 balance sheet, what amount should fafnir report as an intangible asset-franchise?

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