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Golden Cup signed a contract with the marketing planet Inc. by which the marketing agency will be responsible for
Golden Cup marketing for five years period started this year. The contract costs Golden Cup $100,000 that were paid up front, however the company thinks this plan will affect its sales evenly over the five years period. Golden Cup also spends $30,000 in the form of general and administrative expenses per year.
Do I enter amounts on Income statement as is or do I have to divide by 5 years?
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