Journal Entry - Amortization (9 points): EK Company acquired a patent on January 1, 2020 for $41,500 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2020, before any adjustments were recorded for the year, management determined that the remaining useful life was 7 years (with that new estimate being effective as of January 1, 2021). On June 30, 2022, the patent was sold for $26,500. Required: a) Prepare the journal entry to record the acquisition of the patent on January 1, 2020. Loss on Disposal of Patents Cash $41,500 b) Prepare the journal entry to record the annual amortization for 2020. Amortization Expense Loss on Disposal of Patents $4,150 $41,500 $4,150 c) Compute the amount of amortization that would be recorded in 2021 (Round your final answer to the nearest whole dollar.) Amount of Amortization $5,150 d) Determine the gain (loss) on sale on June 30, 2022 (Round your final answer to the nearest whole dollar.) Loss $3,150 e) Prepare the journal entry to record the sale of the patent on June 30, 2022. Cash Amortization Expense Loss on Disposal of Patents Cash $26,500 $2,855 $3,105 $32,050