(TCO C) What are intangible assets?

How are limited-life intangibles accounted for subsequent to acquisition?

On January 1, 2018, Molden Co. signed an agreement to operate as a franchisee of Mold Removal Co.for an initial franchise fee of $100,000.The agreement provides that the fee is not refundable and no future services are required of the franchisor.The agreement also provides that 5% of the Revenue from the franchise must be paid to the franchisor annually.Molden's revenue from the franchise for 2018 was $1,800,000.Molden estimates the useful life of the franchise to be 10 years.

Instructions:

1.Show a schedule of what should be shown in the Intangible Assets Section of Molden's Balance Sheet at December 31, 2018.Show supporting computations in good form.

2.Show a schedule showing all the expenses resulting from these transactions that would appear on Molden's Income Statement for the year ended December 31, 2018.Show supporting computations please.