Information concerning Monty Corporation's intangible assets is as follows. 1. On January 1, 2025, Monty signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $55,000. Of this amount, $11,000 was paid when the agreement was signed, and the balance in 4 annual payments of $11,000 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 $31,400. The agreement also provides that 6% of the revenue from the franchise must be paid to the franchisor annually. Monty's revenue from the franchise for 2025 was $830,000. Monty 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. Monty incurred $60,000 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 $20,000. Monty estimates that the useful life of the patent will be 8 years. 3. A trademark was purchased from Shanghai Company for $48,000 on July 1,2022 . Expenditures for successful litigation in defense of the trademark totaling $11,900 were paid on July 1,2025 . Monty 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 Monty's balance sheet at December 31, 2025. Prepare a schedule showing all expenses resulting from the transactions that would appear on Monty's income statement for the year ended December 31, 2025