On July 15, 2016, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respectively. The book value of the patent and equipment on the date of the sale were $120,000 and $400,000 (cost of $550,000 less accumulated depreciation of $150,000), respectively.
Required:
Prepare the journal entries to record the sales of the patent and equipment.