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Pharoah Company has provided information on intangible assets as follows. A patent was purchased from Shamrock Company for $1,600,000 on January 1, 2024. Pharoah estimated the remaining useful life of the patent to be 10 years. The patent was carried in Shamrock's accounting records at a net book value of $1,600,000 when Shamrock sold it to Pharoah. During 2025, a franchise was purchased from Sheffield Company for $490,000. In addition, 5% of revenue from the franchise must be paid to Sheffield. Revenue from the franchise for 2025 was $2,320,000. Pharoah estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Pharoah incurred research and development costs in 2025 as follows. Pharoah estimates that these costs will be recouped by December 31,2028 . The materials and equipment purchased have no alternative uses. On January 1,2025, because of recent events in the field, Pharoah estimates that the remaining life of the patent purchased on January 1, 2024, is only 5 years from January 1,2025. Prepare a schedule showing the income statement effect (related to expenses) for the year ended December 31, 2025, as a result of the facts above. (Enter account name only and do not provide descriptive information.) PHAROAH COMPANY Income Statement Effect $ $ $