sunland company has provided information on intangible assets as follows. a patent was purchased from splish brothers company for $1,950,000 on january 1, 2019. sunland estimated the remaining useful life of the patent to be 10 years. the patent was carried in splish brothers's accounting records at a net book value of $1,950,000 when splish brothers sold it to sunland. during 2020, a franchise was purchased from marigold company for $460,000. in addition, 5% of revenue from the franchise must be paid to marigold. revenue from the franchise for 2020 was $2,520,000. sunland estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. sunland incurred research and development costs in 2020 as follows. materials and equipment $146,000 personnel 195.000 indirect costs 117.000 $458,000 sunland estimates that these costs will be recouped by december 31. 2023. the materials and equipment purchased have no alternative uses on january 1, 2020, because of recent events in the field, sunland estimates that the remaining life of the patent purchased on january 1, 2019, is only 5 years from january 1, 2020.

Amortization expense represent the cost of long-term assets over the course of their useful lives, such as cars and computers. They show up as depreciation expenses on an organization's financial sheet.

The long-term asset's value is decreased by the same amount each time an amortization expenditure is recorded on the income statement. Until the asset has been sold or replaced, this process is repeated and the asset's cost has been fully expensed.

The amount of a long-term asset's cost that may be amortized in a given year is subject to annual caps set by the Canada Revenue Agency. These are referred to as capital cost allowances. Depletion expense is similar to amortization, but it only applies to natural resources such as minerals and timber.

To learn more about Amortization expense, please refer:

https://brainly.com/question/23160357

#SPJ4