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You pay a company a $100,000 franchise fee for the exclusive right to sell its product for the next five years. You plan to amortize

You pay a company a $100,000 franchise fee for the exclusive right to sell its product for the next five years. You plan to amortize the cost of the fee over the five year term of the franchise. How does the recognition of the amortization of the franchise fee affect the elements of your financial statements

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