Exercise 12-4 Presented below is selected information for Cullumber Company. Answer the questions asked about each of the factual situations. 1. Cullumber purchased a patent from Vania Co. for $1,340,000 on January 1, 2015. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2025. During 2017, Cullumber determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2017? The amount to be reported 2. Cullumber bought a franchise from Alexander Co. on January 1, 2016, for $315,000. The carrying amount of the franchise on Alexander's books on January 1, 2016, was $465,000. The franchise agreement had an estimated useful life of 30 years. Because Cullumber must enter a competitive bidding at the end of 2018, it is unlikely that the franchise will be retained beyond 2025. What amount should be amortized for the year ended December 31, 2017