27. During Year 1, Reforce Company conducted research and development on a new product. By March 31, Year 2, the company had determined the new product was technologically feasible, and the company obtained a patent for the product in April, Year 2. The company developed an initial prototype by June 30, Year 2. Also, by June 30, Year 2, the company had developed a business plan, including identification of a ready market for the product, and a commitment of resources to ready the product for market. After completion of the second prototype at the end of September, Year 2, the product was ready for commercial production and marketing. The company has tracked costs associated with the new product as follows: Market research costs, Year 1 Research costs, Year 1..... Research costs, 1st quarter, Year 2... Legal fees to register patent, April, Year 2.. Development costs for initial prototype, 2nd quarter, Year 2.... Testing of initial prototype, June, Year 2... Management time to develop business plan, 2nd quarter, Year 2... Cost of revisions and second prototype, 3rd quarter, Year 2.. Legal fees to defend patent, October, Year 2....... Commercial production costs, 4th quarter, Year 2. Marketing campaign, 4th quarter, Year 2..... $ 25,000 100,000 70,000 25,000 500,000 50,000 15,000 175,000 50,000 400,000 80,000 Required: Determine the amount related to this new product that will be reported as intangible assets on the company's December 31, Year 2, balance sheet.