Dudas Inc. sold a division of its business in 2017. Pertinent details follow:

Required:
Prepare the journal entry to record the sale of the assets assuming that Dudas Inc. uses the net method to record intangibles. Segregate the gain or loss on the sale into its component parts, for example, arising from the sale of the patent.

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Net book value $ 100,000 Fair value $ 110,000 1,300,000 3,000,000 55,000 Assets sold Cost $ 100,000 2,000,000 40,000 10,000 Inventory Equipment 1,400,000 20,000 10,000 Patent Trademark Consideration received $2,000,000 $6,000,000 interest-free note payable in annual instalments of $1,000,000. Market rate of interest 6.0% per annum. Cash Note receivable