Information concerning Martinez Corporations intangible assets is as follows 1 On January 1, 2017, Martinez signed an agreement to operate as a franchisee of Hsian Copy Service, Inc for an initial franchise fee of $70,000 Of this amount, $14,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $14,000 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 10 (the implicit rate for a loan of this type) is $44,380 The agreement also provides that 6 of the revenue from the franchise must be paid to the franchisor annually Martinezs revenue from the franchise for 2017 was $980,000 Martinez 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 Martinez incurred $60,000 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 $24,000 Martinez 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, 2014 Expenditures for successful litigation in defense of the trademark totaling $39,100 were paid on July 1, 2017 Martinez 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 Martinezs balance sheet at December 31, 2017 (Round all answers to 0 decimal places, e g 8,564 ) Martinez Corportation Intangible Assets Prepare a schedule showing all expenses resulting from the transactions that would appear on Martinezs income statement for the year ended December 31, 2017 (Round all answers to 0 decimal places, e g 8,564 ) Martinez Corporation Expenses Resulting From Selected Intangible Assets Transactions

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Information concerning Martinez Corporations intangible assets is as follows. 1. On January 1, 2017, Martinez signed an agreement to operate as a franchisee of Hsian

Information concerning Martinez Corporations intangible assets is as follows.

1.		On January 1, 2017, Martinez signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $70,000. Of this amount, $14,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $14,000 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 10% (the implicit rate for a loan of this type) is $44,380. The agreement also provides that 6% of the revenue from the franchise must be paid to the franchisor annually. Martinezs revenue from the franchise for 2017 was $980,000. Martinez 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.		Martinez incurred $60,000 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 $24,000. Martinez 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, 2014. Expenditures for successful litigation in defense of the trademark totaling $39,100 were paid on July 1, 2017. Martinez 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 Martinezs balance sheet at December 31, 2017. (Round all answers to 0 decimal places, e.g. 8,564.)

Martinez Corportation
Intangible Assets

Prepare a schedule showing all expenses resulting from the transactions that would appear on Martinezs income statement for the year ended December 31, 2017. (Round all answers to 0 decimal places, e.g. 8,564.)