Information concerning Flounder Corporation's intangible assets is as follows 1. On January 1, 2017, Flounder signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $80,000. Of this amount, $16,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $16,000 each, beginning January 1, 2018. 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, 2017, of the 4 annual payments discounted at 12% (the implicit rate for a loan of this type) is $48,600. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually Flounder's revenue from the franchise for 2017 was $960,000. Flounder 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. Flounder incurred $85,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2017. Legal fees and other costs associated with registration of the patent totaled $17,600 Flounder estimates that the useful life of the patent will be 8 years 3. A trademark was purchased from Shanghai Company for $44,000 on July 1, 2014. Expenditures for successful litigation in defense of the trademark totaling $13,600 were paid on July 1, 2017. Flounder estimates that the useful life of the trademark will be 20 years from the date of acquisition ] Your answer is correct. Prepare a schedule showing the intangible assets section of Flounder's balance sheet at December 31, 2017. (Round all answers to 0 decimal places, e.g. 8,564.) FLOUNDER CORPORATION Intangible Assets ecember 31, 201 ranchis aten rademar otal Intangible Assets $42304 8140 5400 9500 Attempts: 4 of 15 used Your answer is partially correct. Try again Prepare a schedule showing all expenses resulting from the transactions that would appear on Flounder's income statement for the year ended December 31, 2017. (Round all answers to 0 decimal places, e.g. 8,564.) FLOUNDER CORPORATION Expenses Resulting from Selected Intangible Assets Transaction or the Year Ended December 31, 2017 ranchise Amortization atent Amortization rademark Amortization Franchise Fee