WARDEDYA ELECT COURT (Enter account name only and do not provide descriptive information) ORIOLE COMPANY Income Statement Effect December 31, 2020 $ $ Oriole Company has provided information on intangible assets as follows, A patent was purchased from Sage Hill Company for $1,950,000 on January 1, 2019. Oriole estimated the remaining useful life of the patent to be 10 years. The patent was carried in Sage Hill's accounting records at a net book value of $1,950,000 when Sage Hill sold it to Oriole During 2020, a franchise was purchased from Cheyenne Company for $510.000. In addition, 5% of revenue from the franchise must be paid to Cheyenne. Revenue from the franchise for 2020 was $2,360,000. Oriole estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase Oriole incurred research and development costs in 2020 as follows. Materials and equipment $147,000 Personnel 185,000 Indirect costs 110.000 $442.000 Oriole 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, Oriole estimates that the remaining life of the patent purchased on January 1.2019. is only 5 years from January 1, 2020