$1.$ Debbie acquired a franchise to operate a donut shop from Dollar Donuts, Inc., for $$100,000.$ She incurred an additional $$4,000$ in legal costs to negotiate the terms with the franchiser. In five years, the franchise contract will be renegotiated. The current contract also states that there will be a $$3,000$ annual fee plus a two percent charge based on the store's annual revenue, which is expected to average $90,000$ per year. What is the franchise cost that should be capitalized?

a$.$ $$88,000$

b$.$ $$92,000$

c$.$ $$100,000$

d$.$ $$104,000$