Intangibles: Balance Sheet Presentation and Income Statement Effects Dinford Company has provided information on intangible assets as follows 1. A patent as p chased from th e Lou Comp any fo $1,050,000 on Janary 1 2015. Bir ford estimated the re naning used 1 e of the patent to be 15 years. The patent was ca ned in Lous accounting rec rds at a net book value of $760,000 when Lou sold it to Barb 2. During 2016, a franchise was purchased rom Rink Company for $300,000. In addition, 6% of revenue from the franchise must be paid to Rink Revenue from the franchise for 2016 was $2,100,000. Binford estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase nnford murred RAD costs in2016 as folows Materiais and equipment 126,000 150,000 67,000 343,000 Personnel Indrect costs 4. Binfoed estimates that these costs will be recouped by December 31, 2017 On January 1, 2016, Binford estimates, based on new events, that the remaining lide of the patent purchased on January 1, 2015, is only 10 years from January 1, 2016