**Exercise Prompt:**Prepare a schedule showing all expenses resulting from the transactions that would appear on Concord's income statement for the year ended December 31, 2025.**Form Template:****CONCORD CORPORATION***Expenses Resulting from Selected Intangible Assets Transactions*- Dropdown Box: [Intangible Asset Category]- Input Box: $ [Amount]**Template Rows:**1. Dropdown Box: [Intangible Asset Category] $ [Amount]2. Dropdown Box: [Intangible Asset Category] $ [Amount]3. Dropdown Box: [Intangible Asset Category] $ [Amount]4. Dropdown Box: [Intangible Asset Category] _______________5. Dropdown Box: [Intangible Asset Category] $ [Amount] **Information Concerning Concord Corporation’s Intangible Assets**1. **Franchise Agreement (January 1, 2025)**: Concord signed an agreement to operate as a franchise of Hsian Copy Service, Inc. This involved a franchise fee of $60,000, with $12,000 paid initially. The remaining balance is payable in 4 annual payments of $12,000 beginning January 1, 2026. The down payment is non-refundable and no further services are required from the franchisor. Present value at 12% annual payments is $36,540. Franchise income for 2025 was $850,000. Useful life of the franchise is estimated at 10 years.2. **Patent Costs**: Concord incurred $57,000 in R&D costs for a patent granted on January 2, 2025. Legal fees and other costs associated with registering are $20,000. Useful life estimated to be 8 years.3. **Trademark**: Purchased from Shanghai Company for $35,000 on July 1, 2022. Litigation expense of $10,200 paid on July 1, 2025. Estimated useful life of 20 years.**Schedule Showing Intangible Assets (December 31, 2025)**:- **Franchise**: $43,605- **Patent**: $17,500- **Trademark**: $37,875- **Total Intangible Assets**: $98,980The schedule displays each intangible asset's value, showing the financial impact and how these are assessed on Concord's balance sheet.

Intangible assets are typically intellectual assets. Because of how intangible assets are…

Information concerning Concord Corporation's intangible assets is as follows. On January 1, 2025, Concord signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $60,000. Of this amount, $12,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $12,000 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 12% (the implicit rate for a loan of this type) is $36,450. The agreement also provides that 8% of the revenue from the franchise must be paid to the franchisor annually. Concord's revenue from the franchise for 2025 was $850,000. Concord 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.) 1.

Information concerning Concord Corporation's intangible assets is as follows. On January 1, 2025, Concord signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $60,000. Of this amount, $12,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $12,000 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 12% (the implicit rate for a loan of this type) is $36,450. The agreement also provides that 8% of the revenue from the franchise must be paid to the franchisor annually. Concord's revenue from the franchise for 2025 was $850,000. Concord 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.) 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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