Information concerning Blue Corporation's intangible assets is as follows.

On January $1,2025,$ Blue signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $$100,000.$ Of this amount, $$20,000$ was paid when the agreement was signed, and the balance is payable in $4$ annual payments of $$20,000$ each, beginning January $1,2026.$ The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January $1,2025,$ of the $4$ annual payments discounted at $15\%($the implicit rate for a loan of this type$)$ is $$57,100.$ 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 $2025$ was $$870,000.$ 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.$)$

Blue incurred $$65,000$ of experimental and development costs in its laboratory to develop a patent that was granted on January $2,2025.$ Legal fees and other costs associated with registration of the patent totaled $$17,400.$ Blue estimates that the useful life of the patent will be $8$ years.

A trademark was purchased from Shanghai Company for $$48,000$ on July $1,2022.$ Expenditures for successful litigation in defense of the trademark totaling $$8,500$ were paid on July $1,2025.$ Blue estimates that the useful life of the trademark will be $20$ years from the date of acquisition.

Your answer is partially correct.

Prepare a schedule showing the intangible assets section of Blue's balance sheet at December $31,2025.$