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Matthew Corp. acquired a fast food franchise for a P100,000 cash down payment and in addition gave a P300,000, one-year, noninterest-bearing note payable. The implicit

Matthew Corp. acquired a fast food franchise for a P100,000 cash down payment and in addition gave a P300,000, one-year, noninterest-bearing note payable. The implicit interest rate is 12 percent. Matthew also agreed to pay the franchiser P200,000 per year for the next 10 years for promotional campaigns, accounting, and related services by the franchiser. Matthew should record the cost of the franchise as:

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