Question6 Pharoah Company has provided information on intangible assets as follows. A patent was purchased from Ford Company for $2,624,000 on January 1,2016. Pharoah estimated the remaining useful life of the patent to be 10 years. The patent was carried in Ford's accounting records at a net book value of $ 1,838,000 when Ford sold it to Pharoah. During 2017, a franchise was purchased from Polo Company for $ 514,000. In addition, 4% of revenue from the franchise must be paid to Polo. Revenue from the franchise for 2017 was $ 2,496,000. 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 2017 as follows. Materials and equipment $14 2,900 185,200 109,100 $437,200 Indirect costs Pharoah estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative uses. On January 1, 2017, because of recent events in the field, Pharoah estimates that the remaining life of the patent purchased on January 1, 2016, is only 5 years from January 1,2017 Prepare the intangibles section of Pharoah's balance sheet at December 31, 2017. (Enter account name only and do not PHAROAH 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. (Enter account name only and do not provide descriptive information) PHAROAH COMPANY Income Statement Effect