Macklin Co. entered into a franchise agreement with Health Co. for an initial fee of $50,000. Macklin received $10,000 when the agreement was signed. The balance was to be paid at a rate of $10,000 per year, starting the next year. All services were performed by Macklin and the refund period had expired. Operations started n the current year. What amount should Macklin recognize as revenue in the current year?
a. $10,000