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50. Products X, Y, and Z are sold for P1,200. Stand alone prices of X, Y, and Z are P500, P600, and P400 respectively. Y and Z are sometimes sold together for P700.

The amount of transaction price to be allocated to X, Y, and Z are:

P400 each

P500, P420, P280 respectively

P500, P600, P 400 respectively

P400, P500, P300 respectively

51. On December 30, 2022, Geely sells a vehicle with a 3-year service plan for P1.0 M. The stand-alone selling price of the vehicle and service plan is P1.0 M and P250,000 respectively. The amount of revenue to be recognized for the year 2022 is:

P1.0 M

P800,000

P866,667

P1.25 M

52. Sarao Motors sells locally manufactured jeeps on installment basis. Data presented below relates to the companys operations for the last three calendar years:

2022 2021 2020

Cost of installment sales P8,765,625 P7,700,000 P4,950,000

Gross profit rates on sales 32% 30% 28%

Installment accounts receivable, 12/31:

From 2022 sales 9,728,125

From 2021 sales 3,025,000 8,387,500

From 2020 sales 1,512,500 4,812,500

On December 31,2022 how much is the (1) total realized gross profit and (2) deferred gross profit?

a. (1) P3,044,250; and (2) P4,020,500 c. (1) P3,733,750; and (2) P4,020,500

b. (1) P3,044,250; and (2) P4,125,000 d. (1) P6,993,250; and (2) P4,020,500

53. Gray Co. which began operations on January 2,2020, appropriately uses the installment method of accounting. The following information pertains to Gray operations for the 2020:

Installment sales P500,000

Regular sales 300,000

Cost of installment sales 250,000

Cost of regular sales 150,000

General and administrative expense 50,000

Collections on installment sales 100,000

In its December 31, 2020, balance sheet, what amount should Gray report as deferred gross profit?

a. P250,000. b. P200,000 c. P160,000 d. P75,000

62. NTC entered into a franchising agreement with ZTE on June 30, 2022 for a franchise fee of P500,000, payable P100,000 on the agreement date and the balance in four equal annual installments. Per agreement, the down payment is refundable in the event that the franchisor is unable to render certain stipulated services and, so far none have been rendered. In NTCs June 30, 2022 financial statements, the franchise fee revenue to be reported is

a. P0 c. P400,000

b. P100,000 d. P500,000

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