Information concerning Concord Corporation’s intangible assetsis as follows. 1. On January 1, 2020, Concord signed an agreementto operate as a franchisee of Hsian Copy Service, Inc. for aninitial franchise fee of $60,000. Of this amount, $12,000 was paidwhen the agreement was signed, and the balance is payable in 4annual payments of $12,000 each, beginning January 1, 2021. Theagreement provides that the down payment is not refundable and nofuture services are required of the franchisor. The present valueat January 1, 2020, of the 4 annual payments discounted at 12% (theimplicit rate for a loan of this type) is $36,450. The agreementalso provides that 8% of the revenue from the franchise must bepaid to the franchisor annually. Concord’s revenue from thefranchise for 2020 was $850,000. Concord estimates the useful lifeof the franchise to be 10 years. (Hint: You may want to refer toChapter 18 to determine the proper accounting treatment for thefranchise fee and payments.) 2. Concord incurred $75,000 ofexperimental and development costs in its laboratory to develop apatent that was granted on January 2, 2020. Legal fees and othercosts associated with registration of the patent totaled $20,000.Concord estimates that the useful life of the patent will be 8years. 3. A trademark was purchased from Shanghai Company for$35,000 on July 1, 2017. Expenditures for successful litigation indefense of the trademark totaling $10,200 were paid on July 1,2020. Concord estimates that the useful life of the trademark willbe 20 years from the date of acquisition.

Prepare a schedule showing the intangible assets section ofConcord’s balance sheet at December 31, 2020.