Reference no: EM132568306

Question - Crane Corp., reporting under ASPE, has provided the following information regarding its intangible assets:

1. A patent was purchased from Marvin Inc. for $1.1 million on January 1, 2019. Crane 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 $1,450,000 when Marvin sold it to Crane. On January 1, 2020, because of recent events in the field, Crane estimates that the remaining life of this patent is only five years from January 1, 2020.

2. During 2020, a franchise was purchased from Burr Ltd. for $286,000. As part of the deal, Burr must also be paid 6% of revenue from the franchise operations. Revenue from the franchise for 2020 was $1.2 million. Crane estimates the franchise's useful life to be 10 years and takes a full year's amortization in the year of purchase.

3. Crane incurred the following research costs in 2020:

Materials and equipment $80,600

Personnel 120,000

Indirect costs 51,600

Total $252,200

Prepare a schedule showing the intangibles section of Crane's statement of financial position at December 31, 2020.