*Problem 12-3 Information concerning Martinez Corporation's intangible assets is as followe 1, on January 1r 2017, Martinez signed on agreement to operate as a franchisee of Hsian Copy Service. Inc. forn Initial franchise fee of $70,000. Ofthis amount. payable in 4 annual payments of $14,000 eoch, beginning January 1, 2019. 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 annual payments discounted at 10% (the implicit rate for a loan of this type) $44,380. The agreement also provides that 6% of the revenue from the franchise must be paid to the franchisor annually, Martinez revenue from the franchise for 2017 was $990,000. Martinez estimates the useful life of the franchise to be 10 year. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the fronchise fec and payments.) 14,000 was paid when the agreement was signed, and the balance l 2. Martinez 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 $24,000 Martinez estimates that the useful life of the patent will be 8 years 3. A trademark was purchase from Shangna' Company for $30,000n July 1 2014. Expenditures for successful litigation n derense of the rademark totaling $39,100 were sid n July 1 2017 Mortinez estimates that the useful life of the trademark will be 20 years from the date of acquisition. Prepare a schedule showing the intangible assets section of Martinez's balance sheet at December 31, 2017. (Round all answers to 0 decimal places, e.g. 8,564.) MARTINEZ CORPORATION Intangible Assets Prepare schedule showing all expenses resulting from the transactions that would ppear on Mortiez's income statement for the year ended December 31, 2017, (Round all answers to 0 decimal places e g. 8,564.) the 31, MARTINEZ CORPORATION Expenses Resulting from Selected Intangible Assets T