1. On November 1, 2016, GSW, Inc. authorized Steve Kerr to operate a franchisee for an initial franchise fee of P 1,500,000. Of this amount, 40% was received upon contract signing and the balance, represented by a note, is due in 

three annual installments starting December 31,2016. A 65-day period of refund was granted. According to the agreement, the down payment represents a fair measure of the services initially performed. The collectability of the 

note is reasonably certain. PV factor of 2.4. What is the unearned franchise fee at December 31,2016?