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at Open Assignment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION 4 BACK NEXT Problem 12-3 Information concernlng Pronghorn Corporation's Intanglble assets ls as follows. 1. On January 1, 2017, Pronghorn signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $50,000. Of this amount, $10,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $10,000 each, beginning January 1, 2018. The agreement provides that the down payment is not refundable and no future services are required of the franch 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 $31,700. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Pronghorn's revenue from the franchise for 2017 was $920,000. Pronghorn 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. Pronghorn incurred $65,000 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 $19,200. Pronghorn estimates that the useful life of the patent will be 8 years 3. A trademark was purchased from Shanghal Company for $32,000 on July 1, 2014. Expendltures for successful litigation In defense of the trademark totaling $40,800 were pald on July 1, 2017. Pronghorn estimates that the useful life of the trademark w be 20 years from the date of acquisition