Medway Printers incurred external costs of $800,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Medway with a competitive advantage for only eight years due to expected technological advances in the industry. Medway uses the straight-line method of amortization. (Click the icon to view additional information.) Read the requirements. Requirement 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording (a) the purchase of the patent. Journal Entry Date Accounts Debit Credit Accumulated Depreciation-Patents Amortization Expense-Patents Cash Depreciation Expense-Patents Patents X Supplies 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1. 2. Once Medway learned of the competing printer and adjusted the expected future cash flows from its original patent, was this asset impaired? If so, make the impairment adjusting entry. More Info After using the patent for four years, Medway learned at an industry trade show that Spark Printers has patented a more efficient printer and will be selling this printer next quarter. Because of this new information, Medway determined that the expected future cash flows from its patent were now only $300,000. The fair value of Medway's patent on the open market was now zero