Brief Exercise 130 Merlin Corporation owns a patent that has a carrying amount of $600,000. Merlin expects future net cash flows from this patent to total $505,000. The fair value of the patent is $465,000.

Prepare journal entry, if necessary, to record the loss on Impairment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit