Current Attempt in Progress Cullumber Company has provided information on intangible assets as follows. Cullumber incurred research and development costs in 2017 as follows. Materials and equipment Personnel Indirect costs $164,000 289,000 22,700 $475,700 Cullumber estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative uses. A patent was purchased from Oriole Company for $810,000 on January 1, 2016. Cullumber estimated the remaining useful life of the patent to be 10 years. The patent was carried in Oriole's accounting records at a net book value of $2,010,000 when Oriole sold it to Cullumber. During 2017, a franchise was purchased from Clinton Company for $361,000. In addition, 5% of revenue from the franchise must be paid to Clinton. Revenue from the franchise for 2017 was $1,260,000. Cullumber estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. On January 1, 2017, because of recent events in the field, Cullumber estimates that the remaining life of the patent purchased on January 1, 2016, is only 5 years from January 1, 2017. Prepare a schedule showing the intangibles section of Cullumber's balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.) CULLUMBER COMPANY Intangibles Section of Balance Sheet December 31, 2017 Intangible Assets Patents Franchises Total Intangible Assets +A $ $ Prepare a schedule showing 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.) CULLUMBER COMPANY Income Statement Effect 69 eTextbook and Media List of Accounts