The Ultimate Frisbee League $($UFL$)$ licenses its trademark to Tank$-$Skin Apparel. Under the license arrangement, Tank$-$Skin pays the UFL a $$1$ million initial license fee plus a bonus when

annual sales of Tank$-$Skin merchandise reach a threshold. The license agreement is for $4$ years.

How much of the $$1$ million initial license fee should the UFL recognize as revenue in the first year of the contract?

Multiple Choice

Cannot tell from information given.

$$0$

$$250,000$

$$1,000,000$