Gemini Co. purchased a franchise for $240,000. The estimated useful life of the franchise is 30 years. Gemini also assumed the sellers obligation to pay 4% of the net income to the franchisor. Net income for the first year was $10,000. What total amount should Gemini expense in the first year with respect to the acquisition cost of the franchise and the obligation payable to the franchisor?

Answers:	A) $8,400
	B) $8,000
	C) $6,400
	D) $400