Prepare a schedule showing the intangible assets section of Cheyenne's balance sheet at December 31, 2020.CHEYENNE CORPORATIONIntangible AssetsPrepare a schedule showing all expenses resulting from the transactions that would appear on Cheyenne's income statement forthe year ended December 31, 2020.CHEYENNE CORPORATIONExpenses Resulting from Selected Intangible Assets Transactions<< Information concerning Cheyenne Corporation's intangible assets is as follows.1.2.3.On January 1, 2020, Cheyenne signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initialfranchise fee of $50,000. Of this amount, $10,000 was paid when the agreement was signed, and the balance is payable in 4annual payments of $10,000 each, beginning January 1, 2021. The agreement provides that the down payment is notrefundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 4 annualpayments discounted at 10% (the implicit rate for a loan of this type) is $31,700. The agreement also provides that 4% of therevenue 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 todetermine the proper accounting treatment for the franchise fee and payments.)Cheyenne incurred $60,000 of experimental and development costs in its laboratory to develop a patent that was granted onJanuary 2, 2020. Legal fees and other costs associated with registration of the patent totaled $22,400. Cheyenne estimatesthat the useful life of the patent will be 8 years.A trademark was purchased from Shanghai Company for $44,000 on July 1, 2017. Expenditures for successful litigation indefense of the trademark totaling $11,900 were paid on July 1, 2020. Cheyenne estimates that the useful life of thetrademark will be 20 years from the date of acquisition.Prepare a schedule showing the intangible assets section of Cheyenne's balance sheet at December 31, 2020.CHEYENNE CORPORATIONIntangible Assets

Intangible assets (IA) refers to the assets which have no physical existence or physical form and it…

Answered: Intangible Assets $

Business

Accounting

Intangible Assets $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.
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