Letty Sdn Bhd $($LSB$)$ has entered into a contract to acquire the franchise for Papa Ray Nasi Lemak. The company has to pay RM$50,000$ for the franchise and recipe and can sell the nasi lemak for a period of five years. For this purpose, LSB has decided to rent the premises. In addition, the company has bought the equipment and furniture from the franchiser for RM$200,000.$ ABSB has also incurred RM$10,000$ for advertisement and recruitment of staff.