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 $1,2020?$

Example of Answer: $4000($No comma, space, decimal point, or $ sign$)$ Round: $2\mathrm{.}31=2$;$2\mathrm{.}65=3$