Janes Company provided the following information on intangible assets:

a.	A patent was purchased from the Lou Company for $1,550,000 on January 1, 2014. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lous accounting records at a net book value of $520,000 when Lou sold it to Janes.
b.	During 2016, a franchise was purchased from the Rink Company for $670,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase.
c.	Janes incurred research and development costs in 2016 as follows:

Materials and supplies	$	157,000
Personnel		197,000
Indirect costs		77,000
Total	$	431,000

d.	Effective January 1, 2016, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years.