After using the patent for four years, Murley learned at an industry trade show that Speedy Printers has patented a more efficient printer and will be selling this printer next quarter. Because of this new information, Murley determined that the expected future cash flows from its patent were now only $220,000. The fair value of Murley's patent on the open market was now zero. 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. 2. Once Murley learned of the competing printer and adjusted the expected future cash flows from its original patent, was this asset impaired? If so, make the impairment adjusting entry. Murley Printers incurred external costs of $600,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Murley with a competitive advantage for only eight years due to expected technological advances in the industry. Murley uses the straight-line method of amortization. (Click the icon to view additional information.) Read the fequirements Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording (a) the purchase of the patent. Journal Entry Date Accounts Debit Credit