On January $1,2025,$ Barbara Brown signed an agreement, covering $5$ years, to operate as a franchisee of Ivanhoe Inc. for an initial franchise fee of $$51,000.$ The amount of $$11,000$ was paid when the agreement was signed, and the balance is payable in five annual payments of $$8,000$ each, beginning January $1,2026.$ The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April $1,2025.$ Barbara Brown's credit rating indicates that she can borrow money at $7\%$ for a loan of this type.