You are the CPA for franchisee. The franchise agreement requires your client to pay a 2% royalty on gross profit to the franchisor. Your clients income statement shows the following: Sales $500,000.00 Cost of Goods Sold $300,000.00 Operating expenses $100,000.00 Net income $100,000.00 How much does your client owe the franchisor in royalties? a. $6,000.00 b. $2,000.00 c. None of the other choices are correct. d. $10,000.00 e. $4,000.00