Delso Company purchased the following on January $1,20$x$1$:

Office equipment at a cost of $$50,000$ with an estimated useful life to the company of three years and a residual value of $$15,000.$

The company uses the double$-$declining$-$balance method of depreciation for the equipment.

Factory equipment at an invoice price of $$829,400$ plus shipping costs of $$29,000.$ The equipment has an estimated useful life of

$116,000$ hours and no residual value. The company uses the units$-$of$-$production method of depreciation for the equipment.

A patent at a cost of $$403,000$ with an estimated useful life of $13$ years. The company uses the straight$-$line method of amortization

for intangible assets with no residual value.

The company's year ends on December $31.$

Required:

$1-$a$.$ Prepare a partial depreciation schedule of office equipment for $201,202,$ and $203.$

$1-$b$.$ Prepare a partial depreciation schedule of factory equipment. The company used the equipment for $8,700$ hours in $201,9,900$

hours in $202,$ and $9,600$ hours in $203.$

On January $1,204,$ Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $$728,660$ in

cash. Record the entry related to the sale of the factory equipment.

On January $1,20$x$4,$ when the company changed its corporate strategy, the demand for one of its products produced by using the

patent was significantly reduced. Its patent had estimated future cash flows of $$277,000$ and a fair value of $$256,000.$ What would the

company report on the income statement $($account and amount$)$ regarding the patent on January $1,204?$