Gold Company Signs a 13-Year Franchise Agreement with Silver

Gold Company signs a 13-year franchise agreement with Silver.Silver retained significant powers, rights, and a continuing interest.Gold (the franchisee) makes noncontingent payments of $18,000 per year for the first four years of the franchise.Gold also pays a contingent fee of 2% of gross sales every month.Which of the following statements is correct?

A) Gold may deduct the $18,000 per year noncontingent payments in full as they are made.
B) Gold may deduct the monthly contingent fee as it is paid.
C) Gold may deduct both the noncontingent annual fee and the contingent monthly fees as they are paid.
D) Gold may not deduct either the noncontingent annual fee or the contingent monthly fees as they are paid.
E) None of these.