Question

can you please answer the questions that were not correct, please.

Problem 12-3 Information concerning Pina Corporation's intangible assets is as follows. 1. On January 1, 2017, Pina 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 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 $31,700. The agreement also provides that 4% of the revenue from the franchise must be paid to the franchisor annually. Pina's revenue from the franchise for 2017 was $800,000. Pina 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. Pina 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 $17,600. Pina 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 $8,500 were paid on July 1, 2017. Pina estimates that the useful life of the trademark will be 20 years from the date of acquisition Prepare a schedule showing all expenses resulting from the transactions that would appear on Pina's income statement for the year ended December 31, 2017. (Round all answers to 0 decimal places, e.g. 8,564.) PINA CORPORATION Expenses Resulting from Selected Intangible Assets Transactions For the Year Ended December 31, 2017 4000 Interest Expense 32000 Franchise Amortization 4170 Franchise Fee Patent Amortization 2200 1750 Trademark Amortization Total Intangible Assets

Answer 1

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	Interest Expense	$31,700*10%		$    3,170
	Franchise amortization	($10,000+$31,700)/10 Years		$    4,170
	Franchise fee	$800,000*4%		$ 32,000
	Patent Amortization			$    2,200
	Trademark Amortization			$    1,750
	Total Intangible Assets			$ 43,290