CALCULATOR PRINTER VERSION BACK Exercise 12-8 Oriole Company has provided information on intangible assets as follows. A patent was purchased from Ford Company for $2,620,000 on lanuary 1, 2016. Oriole 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 $2,060,000 when Ford sold it to Oriole During 2017, a franchise was pu chased from Polo Company for $576,000. In addition 5% of revenue f om the franchise must be paid to pol Revenue from the franchise for 2017 was $2,771,000. 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 2017 as follows Materials and equipment Personnel $141,100 185,000 103,000 429,100 Indirect costs usesA Oriole estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative On January 1, 2017, because of recent events in the field, Oriole estimates that the remaining life of the patent purchased on January 1, 2016, is only 5 years from January 1, 2017