Intangibles: Balance Sheet Presentation and Income Statement Effects Clinton Company has provided information on Intangible assets as follows: 1. A patent was purchased from Low Company for $1,230,000 on January 1, 2018. Clinton estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $850,000 when Lou sold it to Clinton 2. During 2019, a franchise was purchased from Rink Company for $550,000. In addition, 6% of revenue from the franchise must be paid to Rink Revenue from the franchise for 2019 was $2,500,000. Clinton estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase 3. Clinton incurred RAD costs in 2019 as follows: Materials and equipment Personnel Indirect costs $147,000 178,000 69,000 $394,000 Clinton estimates that these costs will be recouped by December 31, 2020, 4. On January 1, 2019, Clinton estimates, based on new events that the remaining life of the patent purchased on January 1, 2018, is only 10 years from January 1 2019 Required: 1. Prepare a schedule showing the intangibles section of Clinton's balance sheet at December 31, 2019 Clinton Company Intangible Assets Section of Balance Sheet December 31, 2019 Patent, net (Schedule 1) Franchise from Rink Company, net (Schedule 2) Intangible assets Schedule 1 Computation of Patent from Lou Company DOO Clinton Company Intangible Assets Section of Balance Sheet December 31, 2019 Patent, net (Schedule 1) Franchise from Rink Company, net (Schedule 2) Intangible assets Schedule 1: Computation of Patent from Lou Company Cost of patent at date of purchase Amortization of patent for 2018 Amortization of patent for 2019 Patent balance Schedule 2: Computation of Franchise from Rink Company Cost of franchise at date of purchase Amortization of franchise for 2019 Franchise balance