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 $1,2020?$

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