Intangibles: Balance Sheet Presentation and Income Statement Effects Bringle Company has provided information on intangible assets as follows: 1. A patent was purchased from Lou Company for $1,785,000 on January 1, 2018. Bringle estimated the remaining useful life of the patent to be 10 years. The patent was carried in Lou's accounting records at a net book value of $1,565,000 when Lou sold it to Bringle. 2. During 2019, a franchise was purchased from Rink Company for $520,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $1,500,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase. 3. Bringle Incurred R&D costs in 2019 as follows: Materials and equipment Personnel Indirect costs $118,000 168,000 75,000 $361,000 Bringle estimates that these costs will be recouped by December 31, 2020. 4. On January 1, 2019, Bringle estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 5 years from January 1, 2019. Required: 1. Prepare a schedule showing the intangibles section of Bringle's balance sheet at December 31, 2019. Bringle Company Intangible Assets Section of Balance Sheet December 31, 2019 Patent, net (Schedule 1) Franchise from Rink Company, net (Schedule 2) Check My Work 2 more Check My Work uses remaining 15 1,785,000 468,000 Previous Next> All work saved Email Instructor Save and Ext Submit Assignment for Grading MacBook Pro W x 1. Prepare a schedule showing the intangibles section of Bringle's balance sheet at December 31, 2019. Bringle Company Intangible Assets Section of Balance Sheet December 31, 2019 Patent, net (Schedule 1) 1,785,000 Franchise from Rink Company, net (Schedule 2) 468,000 2,253,000 Intangible assets Schedule 1: Computation of Patent from Lou Company Cost of patent at date of purchase Amortization of patent for 2018