Kieso, Intermediate Accounting, 16e Intermediate Accounting (ACCT 3103 and PRINTER VERSION Exercise 12-8 Carter Company has provided information on intangible assets as follows A patent was purchased from Ford Company for $2,000,000 on January 1, 2016. Carter 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 $2,000,000 when Ford sold it to Carter During 2017 a franchise was purchased from polo Comp any for S480 000. In addition, 5% of revenue rom the franchise must be paid to Polo Revenue from the ranchi e for 2017 $2,500,000. Carter estimates the useful life of the franchise to be 10 years and takes a fuill year's amortization in the year of purchase. Carter incurred research and development costs in 2017 as follows Materials and equipment Personnel Indirect costs 142,000 189,000 102,000 5433,000 Carter estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative uses. On January 1, 2017, because of recent events in the field Carter estimates that the renaling life of the patent purchased on lan ary t, 2016 k only S yeen fin inay2017 Prepare the intangibles section of Carter's balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.) CARTER COMPANY Intangibles Section of Balance Sheet