Question 1 Sandhill Company has provided information on intangible assets as follows. A patentwas purchased from Ford Company for 32.555.000 onjanuary 1. 2010. Sandhill estimated the remaining useful life of the patent to be 10 years. The patent was can'ied in Ford's accounting records at a net book value of $2,030,000 when Ford sold it to Sandhill. During 201?, a franchise was purchased from Polo Company for $532,000. In addition, THE-3 of revenue from the franchise must be paid to Polo. Revenue from le fianchise for 201? was $2,600,000. Sandhill estimates the useful iife of the franchise to be 10 years and talces a full year's amortization in the year of purchase. Sandhill incurred research and development costs in 201? as follows. Materials and equipment $133,400 Personnel 130,?00 indirect costs 104,100 $432,200 Sandhill estimates that these costs will be recouped by December 31, 2020. The rnaten'als and equipment purchased have no alternative uses. [in January 1, 201?, because of recent events in the eld, Sandhili estimates that the remaining life of the patent purchased onJanuary 1, 2015, is only 5 years from January 1, 201?. 131 Your answer is correct. Prepare the intangibles section of Sandhill's balance sheet at December 31, 201?. {Enter account name only and do not provide descriptive information.) SAI'IDHILL COMPANY Intangibles Section of Balance Sheet