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Question - Crane Delight, Inc. charges an initial franchise fee of $74,700 for the right to operate as a franchisee of Crane Delight. Of this amount $24,900 is collected immediately. The remainder is collected in four equal annual installments of $12,450 each. These installments have a present value of $41,251. As part of the total franchise fee, Crane Delight also provides training (with a fair value of $2,000) to help franchisees get the store ready to open. The franchise agreement is signed on April 1, 2020, training is completed, and the store opens on July 1, 2020. Prepare the journal entry required by Crane Delight in 2020.
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