I need help with (b)

Problem 12-03 (Part Level Submission)

Information concerning Cheyenne Corporation's intangible assets is as follows.

1.On January 1, 2020, Cheyenne 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, 2021. 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, 2020, of the 4 annual payments discounted at10% (the implicit rate for a loan of this type) is $31,700. The agreement also provides that4% of the revenue from the franchise must be paid to the franchisor annually. Cheyenne's revenue from the franchise for 2020 was $900,000. Cheyenne 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.Cheyenne incurred $60,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2020. Legal fees and other costs associated with registration of the patent totaled $22,400. Cheyenne estimates that the useful life of the patent will be8 years.3.A trademark was purchased from Shanghai Company for $44,000 on July 1, 2017. Expenditures for successful litigation in defense of the trademark totaling $11,900 were paid on July 1, 2020. Cheyenne estimates that the useful life of the trademark will be20 years from the date of acquisition.

(a)

Your answer is correct.

Prepare schedule showing the intangible assets section of Cheyenne's balance sheet at December 31, 2020.

CHEYENNE CORPORATION

Intangible Assets

choose the accounting period

For the Month Ended December 31, 2020

December 31, 2020

For the Year Ended December 31, 2020

select a balance sheet item

Legal Fees

Franchise Amortization

Research and Development Costs

Patent Amortization

Trademark

Trademark Amortization

Patent

Total Intangible Assets

Franchise

Franchise Fee

$enter a dollar amount

select a balance sheet item

Legal Fees

Trademark

Franchise Amortization

Total Intangible Assets

Patent Amortization

Franchise

Trademark Amortization

Research and Development Costs

Franchise Fee

Patent

enter a dollar amount

select a balance sheet item

Franchise

Franchise Fee

Total Intangible Assets

Research and Development Costs

Franchise Amortization

Patent

Legal Fees

Patent Amortization

Trademark

Trademark Amortization

enter a dollar amount

select a closing section name

Franchise Fee

Trademark

Franchise Amortization

Trademark Amortization

Patent

Patent Amortization

Legal Fees

Total Intangible Assets

Franchise

Research and Development Costs

$enter a total amount for this section

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Attempts: 1 of 5 used

(b)

Prepare schedule showing all expenses resulting from the transactions that would appear on Cheyenne's income statement for the year ended December 31, 2020.

CHEYENNE CORPORATION

Expenses Resulting from Selected Intangible Assets Transactions

choose the accounting period

December 31, 2020

For the Year Ended December 31, 2020

For the Month Ended December 31, 2020

select a balance sheet item

Patent

Trademark Amortization

Franchise Amortization

Patent Amortization

Total Intangible Assets

Interest Expense

Franchise

Research and Development Costs

Trademark

Legal Fees

Franchise Fee

$enter a dollar amount

select a balance sheet item

Research and Development Costs

Patent

Franchise Fee

Trademark

Legal Fees

Franchise Amortization

Trademark Amortization

Patent Amortization

Franchise

Total Intangible Assets

Interest Expense

enter a dollar amount

select a balance sheet item

Patent

Patent Amortization

Trademark

Franchise

Trademark Amortization

Legal Fees

Total Intangible Assets

Franchise Fee

Research and Development Costs

Interest Expense

Franchise Amortization

enter a dollar amount

select a balance sheet item

Franchise Fee

Franchise Amortization

Patent

Trademark Amortization

Trademark

Legal Fees

Total Intangible Assets

Patent Amortization

Interest Expense

Franchise

Research and Development Costs

enter a dollar amount

select a balance sheet item

Total Intangible Assets

Trademark Amortization

Interest Expense

Patent

Franchise Fee

Franchise Amortization

Franchise

Trademark

Research and Development Costs

Legal Fees

Patent Amortization

enter a dollar amount

select a closing section name

Total Intangible Assets

Interest Expense

Franchise

Legal Fees

Trademark Amortization

Research and Development Costs

Franchise Amortization

Franchise Fee

Patent

Patent Amortization

Trademark

$enter a total amount for this section

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