On January $1,2023($the first day of its fiscal year$)$ Sandhill Ltd$.$ acquired a patent which gave the company the right to use a production

process. The process met the six criteria for capitalization as an intangible asset. Below is a listing of the events relating to the patent

over the five fiscal years from $2023$ through $2027$:

$2023$:

$,$ on January $1,$ acquired the patent for the production process for a cash payment of $$13,350,000,$ and determined that the

process had an indefinite useful life.

$,$ on December $31,$ tested the patent for impairment and determined that its fair value was $$14,350,000.$

$2024$:

$,$ on December $31,$ tested the patent for impairment and determined that its fair value was $$11,750,000.$

$2025$:

$,$ on December $31,$ tested the patent for impairment and determined that its fair value was $$12,250,000.$

$2026$:

$,$ on January $1,$ determined that the useful life of the patent was no longer indefinite, its carrying amount was recoverable, its

estimated remaining useful life was $5$ years, its estimated residual value was $$0$ and the pattern of economic benefits to be

obtained from the patent during those $5$ years was evenly spread over those $5$ years.

$,$ on December $31,$ tested the process for impairment and recoverability and determined that its fair value was $$1,000,000$ and

its carrying amount was recoverable.

$2027$:

$,$ on December $31,$ tested the patent for impairment and recoverability and determined that its fair value was $$0$ and its

carrying amount was not recoverable.

Prepare all journal entries related to the patent for the production process Sandhill will record from January $1,2023$ to December $31,$

$2027,$ using the cost recovery impairment model. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.

Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

$($To record amortization expense$)$