Martinez, Incorporated 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, 2021, 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. b. Prepare the journal entry to record the annual amortization for 2020. c. Compute the amount of amortization that would be recorded in 2021 d. Determine the gain (loss) on sale on June 30, 2022. e. Prepare the journal entry to record the sale of the patent on June 30, 2022. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Reg A and B Reqc Reg D ReqE Prepare the journal entry to record the acquisition of the patent on January 1, 2020 and for the annual amortization for 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Martinez, Incorporated 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, 2021, 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. b. Prepare the journal entry to record the annual amortization for 2020. c. Compute the amount of amortization that would be recorded in 2021. d. Determine the gain (loss) on sale on June 30, 2022 e. Prepare the journal entry to record the sale of the patent on June 30, 2022. Complete this question by entering your answers in the tabs below. Reg A and B Regc Reg D Reg E Determine the gain (loss) on sale on June 30, 2022. (Round your intermediate calculations and final answer to the nearest whole dollar) Req A and B Reqc RegD ReqE Prepare the journal entry to record the sale of the patent on June 30, 2022. (Round your intermediate calculations and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No Joumal Entry Required in the first account field.) Show less View transaction list Journal entry worksheet Record the sale of the patent on June 30, 2022. Note: Enter debits before credits Debit Credit General Journal Date June 30, 2022 View general Journal Clear entry Record entry
