Janes Company provided the following information on intangible assets:

A patent was purchased from the Lou Company for $1,250,000 on January 1, 2016. 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 $460,000 when Lou sold it to Janes.

During 2018, a franchise was purchased from the Rink Company for $610,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase.

Janes incurred research and development costs in 2018 as follows:

Materials and supplies	$	151,000
Personnel		191,000
Indirect costs		71,000
Total	$	413,000

Effective January 1, 2018, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years.

Required: 1. Prepare the entries necessary for years 2016 through 2018 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janess December 31, 2018, balance sheet.