Carla Vista Company has provided information on intangible assets as follows. A patent was purchased from Tamarisk Company for $1,600,000 on January 1, 2019. Carla Vista estimated the remaining useful life of the patent to be 10 years. The patent was carried in Tamarisk's accounting records at a net book value of $1,600,000 when Tamarisk sold it to Carla Vista. During 2020, a franchise was purchased from Martinez Company for $510,000. In addition, 5% of revenue from the franchise must be paid to Martinez. Revenue from the franchise for 2020 was $2,570,000. Carla Vista estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Carla Vista incurred research and development costs in 2020 as follows. Materials and equipment Personnel Indirect costs $154,000 198,000 110,000 $462,000 Carla Vista 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, Carla Vista estimates that the remaining life of the patent purchased on January 1, 2019, is only 5 years from January 1, 2020. Prepare the income statement effect (related to expenses) for the year ended December 31, 2020, as a result of the facts above. (Enter account name only and do not provide descriptive information.) CARLA VISTA COMPANY Income Statement Effect For the Year Ended December 31, 2020 Patent from Tamarisk Company Amortization of patent $ Franchise from Martinez Company Amortization of franchise