Morgan Printers incurred external costs of $900,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Morgan with a competitive advantage for only nine years due to expected technological advances in the Industry. Morgan 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 Record (b) the amortization of the patent for year 1. Journal Entry Date Accounts Debit Credit Requirement 2. Once Morgan leamed 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. (Record debits first, then credits. Exclude explanations from any joumal entries for transactions that do not require an entry, make sure to select "No entry required in the first cell in the "Accounts" column and leave all other input fields tlak) Date Journal Entry Accounts Debit Credit Choose from any store any number in the input fields and then continue to the nam More Info nt 2. Once paired? If transaction mer input field After using the patent for six years, Morgan learned at an industry trade show that Sonic Printers has patented a more efficient printer and will be selling this printer next quarter. Because of this new information, Morgan determined that the expected future cash flows from its patent were now only $230,000. The fair value of Morgan's patent on the open market was now zero. riginal s from a counts" Print Done