Your answer is correct. Prepare a schedule showing the intangibles section of Crane's statement of financial position at December 31, 2020. Crane Corp. INTANGIBLES SECTION OF STATEMENT OF FINANCIAL POSITION December 31, 2020 Intangible Assets - Patent: 792000 Intangible Assets - Franch 257400 Total intangibles 1049400 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT | Your answer is partially correct. Try again. Compute the net income statement effect for the year ended December 31, 2020 as a result of the facts above. Net increase in income 406800 Exercise 12-10 Crane Corp., reporting under ASPE, has provided the following information regarding its intangible assets: 1. 2. A patent was purchased from Marvin Inc. for $1.1 million on January 1, 2019. Crane estimated the patent's remaining useful life to be 10 years. The patent was carried in Marvin's accounting records at a carrying amount of $1,450,000 when Marvin sold it to Crane. On January 1, 2020, because of recent events in the field, Crane estimates that the remaining life of this patent is only five years from January 1, 2020. During 2020, a franchise was purchased from Burr Ltd. for $286,000. As part of the deal, Burr must also be paid 6% of revenue from the franchise operations. Revenue from the franchise for 2020 was $1.2 million. Crane estimates the franchise's useful life to be 10 years and takes a full year's amortization in the year of purchase. Crane incurred the following research costs in 2020: 3. Materials and equipment Personnel Indirect costs $80,600 120,000 51,600 $252,200