Information concerning Blue Corporation's intangible assets is as follows. 1. On January 1, 2020, Blue signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $57,500. Of this amount, $11,500 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $11,500 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 $36,450. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually, Blue's revenue from the franchise for 2020 was $840,000. Blue 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. Blue incurred $90,000 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 $19,200, Blue estimates that the useful life of the patent will be 8 years. 3. A trademark was purchased from Shanghai Company for $38,000 on July 1,2017 . Expenditures for successful litigation in defense of the trademark totaling $8,500 were paid on July 1,2020, Blue 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 Blue's balance sheet at December 31,2020