Crane Company has provided information on intangible assets as follows. A patent was purchased from Ford Company for $ 2,330,000 on January 1, 2016. Crane estimated the remaining useful life of the patent to be 10 years. The patent was carried in Fords accounting records at a net book value of $ 2,053,000 when Ford sold it to Crane. During 2017, a franchise was purchased from Polo Company for $ 513,000. In addition, 4% of revenue from the franchise must be paid to Polo. Revenue from the franchise for 2017 was $ 2,591,000. Crane estimates the useful life of the franchise to be 10 years and takes a full years amortization in the year of purchase. Crane incurred research and development costs in 2017 as follows. Materials and equipment $ 145,200 Personnel 190,200 Indirect costs 107,300 $ 442,700 Crane estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative uses. On January 1, 2017, because of recent events in the field, Crane estimates that the remaining life of the patent purchased on January 1, 2016, is only 5 years from January 1, 2017.

Prepare the income statement effect (related to expenses) for the year ended December 31, 2017, as a result of the facts above. (Enter account name only and do not provide descriptive information.)