A patent was purchased from Sage Hill Company for $1,950,000 on January 1, 2019. Oriole estimated the remaining useful life of the patent to be 10 years. The patent was carried in Sage Hill's accounting records at a net book value of $1,950,000 when Sage Hill sold it to Oriole. During 2020, a franchise was purchased from Cheyenne Company for $510,000. In addition, 5% of revenue from the franchise must be paid to Cheyenne. Revenue from the franchise for 2020 was $2,360,000. Oriole estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Oriole incurred research and development costs in 2020 as follows. Materials and equipment Personnel Indirect costs $147,000 185,000 110,000 $442,000 Oriole estimates that these costs will be recouped by December 31, 2023. The materials and equipment purchased have no alternative uses. On January 1, 2020, because of recent events in the field, Oriole estimates that the remaining life of the patent purchased on January 1, 2019, is only 5 years from January 1, 2020. ORIOLE COMPANY Intangibles Section of Balance Sheet December 31, 2020 V Intangible Assets Patents $ Franchises Total Intangible Assets $ e Textbook and Media List of Accounts ORIOLE COMPANY Income Statement Effect $ $ $