Conrad Inc. purchased a patent for $$1,000,000$ for a specialty line of patented switch plate covers and outlet plate covers specifically

designed to light up automatically when the power fails. Assume the switch plate patent was purchased January $1,2020,$ and it is

being depreciated over a period of ten years. Assume that Conrad Inc. does not use an accumulated amortization account but instead

charges amortization directly against the intangible asset account.

Required:

This part of the question is not part of your Connect assignment.

Prepare the journal entries to record the purchase and amortization of the switch plate patent in $2020.($If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

Record the purchase of patent.

Note: Enter debits before credits.

After a year of unsuccessful attempts to manufacture the switch plate covers, Conrad Inc. determined the patent was significantly impaired and its book value on January $1,2020,$ was written off. Prepare the journal entry to record the impairment. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$