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On July 1, 2020, Ed Wynne signed an agreement to operate as a franchisee of...

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Accounting

image On July 1, 2020, Ed Wynne signed an agreement to operate as a franchisee of Kwik Foods, Inc., for an initial franchise fee of $900,000. Of this amount, $300,000 was paid when the agreement was signed, and the balance is payable in four equal annual payments of $150,000 beginning July 1,2021 . The agreement provides that the down payment is not refundable and no future services are required of the franchisor. Wynne's credit rating indicates that he can borrow money at 8% for a loan of this type. At what amount Wynne should record the acquisition cost of the franchise on July 1, 2020? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Round: 2.31=2;2.65=3 Answer: 110294

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