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- February 20, 2021 at 9:37 am #611062
Willow often sponsors professional tennis players in an attempt to improve its brand image. At the moment, it has a three-year agreement with a tennis player who is currently ranked in the world’s top ten players. The agreement is that the player receives a signing bonus of $20,000 and earns an annual amount of $50,000, paid at the end of each year for three years, provided that the player has competed in all the specified tournaments for each year. If the player wins a major tournament, she receives a bonus of 20% of the prize money won at the tournament. In return, the player is required to wear advertising logos on tennis apparel, play a specified number of tournaments and attend photo/film sessions for advertising purposes. The different payments are not interrelated.
sir why the $20000 is not capitalised? and pls state its correct treatment
secondly, why the 20% is an executory contract?
February 22, 2021 at 10:57 am #611298Please resubmit as 2 threads using appropriate headings such as ‘capitalisation of intangible’.
Please do not copy and paste the entire question (copyright issues). Try and express the problem is your own words.
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