Martinez, Inc. acquired a patent on January 1, 2017 for $40,900 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, 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, 2018). On June 30, 2019, the patent was sold for $25,900. Required: Prepare the journal entry to record the acquisition of the patent on January 1, 2017. Prepare the journal entry to record the annual amortization for 2017. Compute the amount of amortization that would be recorded in 2018. Determine the gain (loss) on sale on June 30, 2019. Prepare the journal entry to record the sale of the

4 Martinez, Inc. acquired a patent on January 1, 2017 for $40,900 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, 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, 2018). On June 30, 2019, the patent was sold for $25,900. 2.5 points Required: a. Prepare the journal entry to record the acquisition of the patent on January 1, 2017. b. Prepare the journal entry to record the annual amortization for 2017. c. Compute the amount of amortization that would be recorded in 2018. d. Determine the gain (loss) on sale on June 30, 2019. e. Prepare the journal entry to record the sale of the patent on June 30, 2019. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A and B Reqc Reg D Reg E Prepare the journal entry to record the acquisition of the patent on January 1, 2017 and for the annual amortization for 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Date General Journal Debit Credit 1 January 01, 2017 Patents 40,900 Cash 40,900 2 December 31, 2011 Amortization Expense 4,090 Accumulated Amortization 4,090 Martinez, Inc. acquired a patent on January 1, 2017 for $40,900 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, 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, 2018). On June 30, 2019, the patent was sold for $25,900. Required: a. Prepare the journal entry to record the acquisition of the patent on January 1, 2017. b. Prepare the journal entry to record the annual amortization for 2017. c. Compute the amount of amortization that would be recorded in 2018. d. Determine the gain (loss) on sale on June 30, 2019. e. Prepare the journal entry to record the sale of the patent on June 30, 2019. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D Req E Compute the amount of amortization that would be recorded in 2018. (Round your final answer to the nearest whole dollar.) Show less Amount of Amortization $ 5,259 Martinez, Inc. acquired a patent on January 1, 2017 for $40,900 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, 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, 2018). On June 30, 2019, the patent was sold for $25,900. Required: a. Prepare the journal entry to record the acquisition of the patent on January 1, 2017. b. Prepare the journal entry to record the annual amortization for 2017. c. Compute the amount of amortization that would be recorded in 2018. d. Determine the gain (loss) on sale on June 30, 2019. e. Prepare the journal entry to record the sale of the patent on June 30, 2019. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B ReqC Reg D Reg E Determine the gain (loss) on sale on June 30, 2019. (Round your intermediate calculations and final answer to the nearest whole dollar.) Loss $ 1,169 Martinez, Inc. acquired a patent on January 1, 2017 for $40,900 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, 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, 2018). On June 30, 2019, the patent was sold for $25,900. Required: a. Prepare the journal entry to record the acquisition of the patent on January 1, 2017. b. Prepare the journal entry to record the annual amortization for 2017. c. Compute the amount of amortization that would be recorded in 2018. d. Determine the gain (loss) on sale on June 30, 2019. e. Prepare the journal entry to record the sale of the patent on June 30, 2019. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B ReqC Req D Reg E Prepare the journal entry to record the sale of the patent on June 30, 2019. (Round your intermediate calculations and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Show less A No Date Debit Credit 1 June 30, 2019 General Journal Cash Loss on Disposal Accumulated Amortization 25,900 2,729 X 28,922 X