2. Summit Company owns equipment that cost $45,000 when purchased on January 1, 2017. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated life of 5 years. Prepare the journal entries to record the sale of the equipment in these two independent situations. 1. Sold for $25,000 on January 1, 2020 2. Sold for $10,000 on May 1, 2020 Account Titles and Explanation Ref Debit Credit 3. Match the statement with the term most directly associated with it. Goodwill Intangible Assets Research and development costs Amortization Franchises a) Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance b) The excess of cost of a company over the fair value of the net assets acquired c) A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area d) Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred e) The allocation of the cost of an intangible asset to expense in a rational and systematic manner