Inez and Sofia opened a clothing store franchise after securing a $25,000 franchise license. After their license expires, it won’t be worth anything unless they choose to renew.
Inez lists the first year’s amortization expense of the franchise agreement as $833. How long will the franchise agreement be valid before it expires?
a. 15 years
b. 25 years
c. 30 years
d. 32 years
e. 35 years