On March 31, 20x1, ABC Company provides a license to Mr. X. Under the license agreement, Mr. X pays a non-refundable upfront fee of P200,000. The license agreement provides Mr. X the right to access...

Extracted text: On March 31, 20x1, ABC Company provides a license to Mr. X. Under the license agreement, Mr. X pays a non-refundable upfront fee of P200,000. The license agreement provides Mr. X the right to access the license for 5 years. 1. How much should ABC Company recognized as revenue in the first year of the contract on December 31, 20x1? 2. How much should ABC Company recognized as revenue in the first year of the contract if Mr. X has the right to use the license on December 31, 20x1?