Exercise 12-10 Cullumber 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. Cullumber 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 $1,370,000 when Marvin sold it to Cullumber. On January 1, 2020, because of recent events in the field, Cullumber 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 $302,000. As part of the deal, Burr must also be paid 5% of revenue from the franchise operations. Revenue from the franchise for 2020 was $1.4 million. Cullumber estimates the franchise's useful life to be 10 years and takes a full year's amortization in the year of purchase. Cullumber incurred the following research costs in 2020: 3. Materials and equipment Personnel Indirect costs $81,100 111,000 53,600 $245,700 Your answer is partially correct. Try again. Prepare a schedule showing the intangibles section of Cullumber's statement of financial position at December 31, 2020. Cullumber Corp. INTANGIBLES SECTION OF STATEMENT OF FINANCIAL POSITION December 31, 2020 Intangible Assets - Patent Intangible Assets - Franch X Total intangibles 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