Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor recelves $710,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a Monitor Muffler retail establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a Monitor Mechanic, and (3) franchisees receive a Monitor Muffler building and necessary equipment. The stand-alone selling price of the initial training and certification is $17,200, and $538,000 for the building and equipment. Monitor estimates the stand-alone selling price of the five-year right to operate as a Monitor Muffler establishment using the residual approach. Monitor received $86,000 on July 1, 2024, from Perkins and accepted a note receivable for the rest of the franchise price. Monitor will construct and equip Perkins's build'ng and train and certify Perkins by September 1 , and Perkins's five-year right to operate as a Monitor Muffler establishment will commence on September 1 as well. Required: 1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffler retail establishment? 2. What journal entry would Monitor record on July 1,2024, to reflect the sale of a franchise to Dan Perkins? 3. How much revenue would Monitor recognize in the year ended December 31 , 2024, with respect to its franchise arrangement with Perkins? (Ignore any interest on the note receivable.)