Moon company purchased a patent with an original cost of $ 450,000 on August 1 2014. The patents estimated useful life is 9 years. The patent is sold on February 1, 2018 for an amount of $300,000. What is the gain or loss that will be reported assuming that the patent was properly amortized using the straight-line method?

What is the economic event behind this problem? What are the GAAP recognition rules, theory or concept?

How will this be measured?

Prepare the journal entries to record. How does this look on accounting equation and in T-Account form?