*Exercise 12-8 Crane Company has provided information on intangible assets as follows. A patent was purchased from Ford Company for $2,770,000 on January 1, 2016. Crane estimated the remaining useful life of the patent to be 10 years. The patent was carried in Ford's accounting records at a net book value of $1,942,000 when Ford sold it to Crane. During 2017, a franchise was purchased from Polo Company for $515,000. In addition, 4% of revenue from the franchise must be paid to Polo. Revenue from the franchise for 2017 was $2,722,000. Crane estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Crane incurred research and development costs in 2017 as follows. Materials and equipment Personnel Indirect costs $140,400 186,100 100,200 $426,700 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. Your answer is partially correct. Try again. Prepare the intangibles section of Crane's balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.) CRANE COMPANY Intangibles Section of Balance Sheet December 31, 2017 2493000 498600 1,994,400 Your answer is partially correct. Try again. 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.) CRANE COMPANY Income Statement Effect December 31, 2017 1,994,400 x= 151500 463500 1,994,400 463,500 ||2,457,900