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Ajax Dry Cleaners, Inc. charges an initial franchise fee of P195,000. When the agreement is...

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Accounting

Ajax Dry Cleaners, Inc. charges an initial franchise fee of P195,000. When the agreement is signed, a payment of P75,000 is due, followed by four annual payments of P30,000 at the end of each period. Ajax's normal borrowing rate is 12% PV for 4 periods is 3.0373). How much would be the recognized franchise revenue if the franchiser has substantial services to perform and the collection of the note is extremely uncertain

a. P166,119

b. P75,000

c. P91,119

d. P-0-

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