(1) On January 1, 2014, Baker signed an agreement to operate as a franchisee of Max & Jess Food Chain Inc for an initial franchisee of $1,500,000. Of this amount, $300,000 was paid when the agreement was signed and the balance is payable in 4 annual payments of $300,000 each beginning January 1, 2015. The agreement provides that the downpayment is not refundable and no future services are required of the franchisor. The present value at January 1, 2014 is $874,000. The agreement also provides that 5% of the revenue must be paid to the franchisor annually. Baker's revenue for 2014 was 19,000,000. Baker estimates the useful life of the franchise to be 10 years.

(2) Baker incurred $1,300,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2, 2014. Legal fees and other costs associated with registration of the patent totaled $272,000. Baker estimates that the useful life of the patent will be 8 years.

(3) A trademark was purchased from Banawe Company for $640,000 on July 1, 2011. Expenditures for successful litigation in defense of the trademark totaling $163,200 were paidon July 1, 2013. Baker estimates the useful life of the trademark will be 20 years from acquisition.

Required:

(a) Carrying value of the franchise at December 31, 2014

(b) Carrying value of the patent at December 31, 2014

(c) Carrying value of the trademark at December 31,2014

(d) Total expenses from the transactions for the year ended December 31, 2014