Ayayai Corporation owns a patent that has a carrying amount of $$260,000.$ Ayayai expects future net cash flows from this patent to total $$180,000.$ The fair value of the patent is $$80,000.$

Prepare Ayayai's journal entry to record the loss on impairment. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

Loss on Impairment