Independent of Part 1, Lakers Inc. purchased a patent on November 1, 2020 for $ 750,000. At the time of purchase, Lakers estimated that the patent's economic benefits would last until the end of 2026 and the residual value is zero. Lakers' fiscal year end is December 31. On April 1, 2023, Lakers sold the patent to another company for proceeds of 25% of the original acquisition costs.

Instructions

1. Calculate the carrying value at time of sales;
2. Prepare the journal entry to record the sale