Cullumber Company has provided information on intangible assets as follows. A patent was purchased from Marin Company for $1,700,000 on January 1, 2024. Cullumber estimated the remaining useful life of the patent to be 10 years. The patent was carried in Marin's accounting records at a net book value of $1,700,000 when Marin sold it to Cullumber. During 2025, a franchise was purchased from Riverbed Company for $480,000. In addition, 5% of revenue from the franchise must be paid to Riverbed. Revenue from the franchise for 2025 was $2,500,000. Cullumber estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Cullumber incurred research and development costs in 2025 as follows. Materials and equipment Personnel Indirect costs $149,000 183,000 110,000 $442,000 Cullumber estimates that these costs will be recouped by December 31, 2028. The materials and equipment purchased have no alternative uses. On January 1, 2025, because of recent events in the field, Cullumber estimates that the remaining life of the patent purchased on January 1, 2024, is only 5 years from January 1, 2025.