Prepare the income statement effect (related to expenses) for the year ended december 31 2020

Crane Company has provided information on intangible assets as follows. A patent was purchased from Larkspur Company for $1,850,000 on January 1, 2019. Crane estimated the remaining useful life of the patent to be 10 years. The patent was carried in Larkspur's accounting records at a net book value of $1,850,000 when Larkspur sold it to Crane. During 2020, a franchise was purchased from Blue Company for $490,000. In addition, 5% of revenue from the franchise must be paid to Blue. Revenue from the franchise for 2020 was $2,490,000. Crane estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Crane incurred research and development costs in 2020 as follows. Materials and equipment $152,000 Personnel 201,000 Indirect costs 119.000 $472.000 Crane estimates that these costs will be recouped by December 31, 2023. The materials and equipment purchased have no alternative uses. On January 1, 2020, because of recent events in the field, Crane estimates that the remaining life of the patent purchased on January 1, 2019, is only 5 years from January 1, 2020. Prepare the intangibles section of Crane's balance sheet at December 31, 2020. (Enter account name only and do not provide descriptive information.) CRANE COMPANY Intangibles Section of Balance Sheet $ $ Prepare the income statement effect related to expenses) for the year ended December 31, 2017, as a result of the facts above. information) CULLUMBER COMPANY Income Statement Effect Show transcribed image text