Martinez, Inc. acquired a patent on January 1, 2016 for $40,900 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2017, 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, 2017). On June 30, 2018, the patent was sold for $25,900. Prepare the journal entry to record the annual amortization for 2016.