SANDHILL COMPANY Income Statement Effect For the Year Ended December 31, 2017 Your answer is incorrect. Try again. Prepare the intangibles section of Sandhill's balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.) SANDHILL COMPANY Intangibles Section of Balance Sheet December 31, 2017 Current Assets Amortisation in year 2016 Exercise 12-8 Sandhill Company has provided information on intangible assets as follows A patent was purchased from Ford Company for $2,555,000 on January 1, 2016. Sandhill 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 $2,036,000 when Ford sold it to During 2017, a franchise was purchased from Polo Company for $532,000. In addition In the franchise must be pald 7% of revenue from to Polo Revenue from the franchise for 2017 as 2 690,000. Sandhill estimates t he useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Sandhill inourred research and development costs in 2017 as follows. Materials and equipment Personnel Indirect costs n in the year of purchasfor $138,400 199,700 104,100 Sandhill rstimates that these casts will be recnuped by December 31, 2020. The materials and equipment purchased have no alternative uses. On January 1, 2017, because of recent events in the field, Sandhill estimates that the remaining lite of the patent purchased on January 1, 2016, is only 5 years from January 1, 2017