Current Attempt in Progress

Devon Pharoah Company has provided information on intangible assets as follows.

A patent was purchased from Shamrock Company for $$1,600,000$ on January $1,2021.$ Pharoah estimated the remaining useful life of the patent to be $10$ years. The patent was carried in Shamrock's accounting records at a net book value of $$1,100,000$ when Shamrock sold it to Pharoah.

During $2022,$ a franchise was purchased from Sheffield Company for $$490,000.$ In addition, $5\%$ of revenue from the franchise must be paid to Sheffield. Revenue from the franchise for $2022$ was $$2,320,000.$ Pharoah estimates the useful life of the franchise to be $10$ years and takes a full year's amortization in the year of purchase.

Pharoah incurred research and development costs in $2022$ as follows.

$\backslash$table$[[$Materials and equipment,$$159,000$