Sandhill Company has provided information on intangible assets as follows. A patent was purchased from Teal Mountain Company for $1,750,000 on January 1, 2019. Sandhill estimated the remaining useful life of the patent to be 10 years. The patent was carried in Teal Mountain's accounting records at a net book value of $1,750,000 when Teal Mountain sold it to Sandhill. During 2020, a franchise was purchased from Monty Company for $450,000. In addition, 5% of revenue from the franchise must be paid to Monty. Revenue from the franchise for 2020 was $2,380,000. Sandhill estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Sandhill incurred research and development costs in 2020 as follows. Materials and equipment $153,000 Personnel 181,000 Indirect costs 116,000 $450,000 Sandhill 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, Sandhill 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 Sandhill's balance sheet at December 31, 2020. (Enter account name only and do not provide descriptive information.) SANDHILL COMPANY Intangibles Section of Balance Sheet December 31, 2020 Intangible Assets Patents Franchises Total Intangible Assets eTextbook and Media List of Accounts Prepare the income statement effect (related to expenses) for the year ended December 31, 2020, as a result of the facts above. (Enter account name only and do not provide descriptive information.) SANDHILL COMPANY Income Statement Effect For the Year Ended December 31, 2020 Patent from Teal Mountain Company : Amortization of franchise Franchise from Monty Company : Amortization of franchise Payment to Monty Company Research and development costs Total charged against income