On December $31,$Year $1,$Rice $,$Inc authorized Graf to operate as a franchisee for an initial franchise fee of $$150,000.$Of this amount,$$60,000$ was received upon signing the agreement and the balance,represented by a note,is due in three annual payments of $$30,000$ each beginning December $31,$Year $2.$The present value on December $31,$Year $1,$of the three annual payments appropriately discounted is $$72,000.$According to the agreement,the non refundable down payment represents a fair measure of the services already performed by Rice;however,substantial future services are required of Riuce.Collectibility of the note is reasonably certain.In Rice,s December $31,$Year $1,$balance sheet,unearned franchise fees from Graf,s franchise should be reported as :