Amplify Inc. purchased a patent on September 1, 2018 for $41,080. At the time of purchase, Amplify estimated that the patent’s economic benefits would last until the end of 2022. Amplify’s fiscal year end was December 31. On April 1, 2021, Amplify sold the patent to another company.

Required

1) Prepare the journal entry to record the sale, assuming Amplify sold the patent for $21,690.

2) Prepare the journal entry to record the sale, assuming Amplify sold the patent for $12,240.