1. On January 1, 2021 Dairy Treats, Inc. entered into a franchise agreement with a company allowing the company to do business under Dairy Treats name. Dairy Treats had performed substantially all required services by January 1, 2021, and the franchisee paid the initial franchise fee of $980,000 in full on that date. The franchise agreement specifies that the franchisee must pay a continuing franchise fee of $84,000 annually. What entry should Dairy Treats make on January 1, 2021 to record receipt of the initial franchise fee and the continuing franchise fee for 2021?

		Cash............................................................................................. 1,064,000 Franchise Fee Revenue............................................ 980,000 Franchise Revenue................................................... 84,000
		Cash............................................................................................. 1,064,000 Unearned Franchise Revenue ............................. 1,064,000
		Cash............................................................................................. 1,064,000 Franchise Fee Revenue............................................ 980,000 Franchise Revenue................................................... 67,200 Unearned Franchise Revenue.................................. 16,800
		Prepaid Advertising..................................................................... 16,800 Cash............................................................................................ 1,064,000 Franchise Fee Revenue............................................ 980,000 Franchise Revenue................................................... 84,000 Unearned Franchise Revenue.................................. 16,800

Please explain in detail! Thank you. The answer I chose was answer choice C BUT it was wrong!