Information concerning Ayayai Corporations intangible assets is as follows.

1.		On January 1, 2020, Ayayai signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $50,000. Of this amount, $10,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $10,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 4 annual payments discounted at 10% (the implicit rate for a loan of this type) is $31,700. The agreement also provides that 4% of the revenue from the franchise must be paid to the franchisor annually. Ayayais revenue from the franchise for 2020 was $800,000. Ayayai estimates the useful life of the franchise to be 10 years. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the franchise fee and payments.)
2.		Ayayai incurred $60,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2020. Legal fees and other costs associated with registration of the patent totaled $17,600. Ayayai estimates that the useful life of the patent will be 8 years.
3.		A trademark was purchased from Shanghai Company for $30,000 on July 1, 2017. Expenditures for successful litigation in defense of the trademark totaling $8,500 were paid on July 1, 2020. Ayayai estimates that the useful life of the trademark will be 20 years from the date of acquisition.

Prepare a schedule showing the intangible assets section of Ayayais balance sheet at December 31, 2020.

AYAYAI CORPORATION Intangible Assets choose the accounting period For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020
select a balance sheet item Legal FeesFranchise FeePatentTrademark AmortizationFranchise AmortizationPatent AmortizationTrademarkFranchiseTotal Intangible AssetsResearch and Development Costs		$enter a dollar amount
select a balance sheet item Trademark AmortizationLegal FeesPatent AmortizationFranchisePatentTrademarkFranchise FeeTotal Intangible AssetsFranchise AmortizationResearch and Development Costs		enter a dollar amount
select a balance sheet item Total Intangible AssetsFranchise FeeFranchise AmortizationTrademark AmortizationTrademarkFranchiseLegal FeesResearch and Development CostsPatentPatent Amortization		enter a dollar amount
select a closing section name Patent AmortizationTotal Intangible AssetsFranchisePatentTrademark AmortizationFranchise FeeFranchise AmortizationLegal FeesTrademarkResearch and Development Costs		$enter a total amount for this section

eTextbook and Media

Prepare a schedule showing all expenses resulting from the transactions that would appear on Ayayais income statement for the year ended December 31, 2020.

AYAYAI CORPORATION Expenses Resulting from Selected Intangible Assets Transactions choose the accounting period December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
select a balance sheet item Interest ExpenseFranchiseFranchise AmortizationPatentFranchise FeeTrademarkTrademark AmortizationResearch and Development CostsLegal FeesPatent AmortizationTotal Intangible Assets		$enter a dollar amount
select a balance sheet item Franchise AmortizationLegal FeesTrademark AmortizationPatentInterest ExpenseTotal Intangible AssetsFranchise FeeTrademarkResearch and Development CostsFranchisePatent Amortization		enter a dollar amount
select a balance sheet item PatentInterest ExpenseResearch and Development CostsFranchise AmortizationFranchise FeeTrademarkFranchiseTrademark AmortizationLegal FeesPatent AmortizationTotal Intangible Assets		enter a dollar amount
select a balance sheet item Franchise FeeTrademark AmortizationResearch and Development CostsTrademarkLegal FeesFranchise AmortizationInterest ExpenseFranchisePatentPatent AmortizationTotal Intangible Assets		enter a dollar amount
select a balance sheet item Research and Development CostsPatent AmortizationTrademark AmortizationFranchise FeeTrademarkPatentTotal Intangible AssetsInterest ExpenseLegal FeesFranchiseFranchise Amortization		enter a dollar amount
select a closing section name PatentTotal Intangible AssetsFranchise FeeInterest ExpensePatent AmortizationLegal FeesResearch and Development CostsTrademark AmortizationFranchiseFranchise AmortizationTrademark		$enter a total amount for this section

Information concerning Ayayai Corporation's intangible assets is as follows. 1. On January 1, 2020, Ayayai signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $50,000. Of this amount, $10,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $10,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 4 annual payments discounted at 10% (the implicit rate for a loan of this type) is $31,700. The agreement also provides that 4% of the revenue from the franchise must be paid to the franchisor annually. Ayayai's revenue from the franchise for 2020 was $800,000. Ayayai estimates the useful life of the franchise to be 10 years. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the franchise fee and payments.) Ayayai incurred $60,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2020. Legal fees and other costs associated with registration of the patent totaled $17,600. Ayayai estimates that the useful life of the patent will be 8 years. A trademark was purchased from Shanghai Company for $30,000 on July 1, 2017. Expenditures for successful litigation in defense of the trademark totaling $8,500 were paid on July 1, 2020. Ayayai estimates that the useful life of the trademark will be 20 years from the date of acquisition. 2. 3. Prepare a schedule showing the intangible assets section of Ayayai's balance sheet at December 31, 2020. AYAYAI CORPORATION Intangible Assets December 31, 2020 V Franchise Amortization $ 37530 Patent Amortization 13200 Trademark Amortization Total Intangible Assets $ e Textbook and Media Prepare a schedule showing all expenses resulting from the transactions that would appear on Ayayai's income statement for the year ended December 31, 2020. AYAYAI CORPORATION Expenses Resulting from Selected Intangible Assets Transactions