Amplify Inc. purchased a patent on September 1, 2020, for $40,000. At the time of purchase, Amplify estimated that the patent's economic benefits would last for five years. Amplify's fiscal year-end was December 31. On April 1, 2023, Amplify sold the patent to another company. Amplify uses the rational entity model for impairment. Alphabet amortizes intangible assets to the nearest month. Amplify uses the rational entity model for impairment. Amplify amortizes intangible assets to the nearest month.

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.