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Intangibles: Balance Sheet Presentation and Income Statement Effects Calvert Company has provided information on intangible assets as follows: 1. A patent was purchased from Lou Company for $1,905,000 on January 1, 2018. Calvert estimated the remaining useful life of the patent to be 10 years. The patent was carried in Lou's accounting records at a net book value of $1,685,000 when Lou sold is to Calvert. 2. During 2019, a franchise was purchased from Rink Company for $330,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $1,700,000. Calvert estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. 3. Calvert incurred R\&D costs in 2019 as follows: Calvert estimates that these costs will be recouped by December 31,2020. 4. On January 1, 2019, Calvert estimates, based on new events, that the remaining life of the patent purchased on January 1,2018 , is only 5 years from January 1,2019. Required: 1. Prepare a schedule showing the intangibles section of Calvert's balance sheet at December 31, 2019. 2. Prepare a schedule showing the income statement effects for the year ended December 31,2019 , as a result of the previously mentioned facts

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