Speed Racer, Inc. charges an initial franchise fee of $75,000 for the right to operate as a franchisee of Speed Racer. Of this amount, $25,000 is collected immediately. The remainder is collected in 4 equal an- nual installments of $12,500 each. These installments have a present value of $39,623. There is reasonable expectation that the down payment may be refunded and substantial future services be performed by Speed Racer, Inc. Prepare the journal entry required by Speed Racer to record the franchise fee.