CP 8-14 Brown Company paid $900,000 cash to purchase the following tangible and intangible assets of Coffee Company on January 1, 2019: Land Building Patents Machinery $300,000 200,000 100,000 250,000 The building is depreciated using the double-declining balance method, has an estimated useful life of ten years, and a salvage value of $10,000. The machinery has an estimated useful life of five years and a salvage value of 10% of cost. Depreciation expense is calculated on the basis of productive output. The machinery's productive output was estimated to be 60,000 units. Actual production was as follows: 2019 2020 2021 10,000 15,000 20,000 The patents have an estimated useful life of twenty years and are amortized on a straight-line basis. They have no salvage value. On December 31, 2020, the value of the patents was estimated to be $80,000. The machinery was sold on December 2, 2021 for $100,000. The company uses the year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31. Required: Prepare journal entries to record in the records of Brown: 1. The $900,000 purchase 2. Depreciation and amortization expense for 2019 3. The decline in value of the patents at December 31, 2020 4. The sale of the machinery