Practice Problem 12-01 Sandhill Co., organized in 2017, provided you with the following information. 1. Purchased a license for $30,240 on July 1, 2017. The license gives Sandhill exclusive rights to sell its services in the tri-state region and will expire on July 1, 2025. 2. Purchased a patent on January 2, 2018, for $78,200. It is estimated to have a 5-year life. 3. Costs incurred to develop an exclusive Internet connection process as of June 1, 2018, were $94,200. The process has an indefinite life. 4. On April 1, 2018, Sandhill Co. purchased a diode manufacturer for $701,800. Goodwill recorded in the transaction was $119,000. 5. On July 1, 2018, legal fees for successful defense of the patent purchased on January 2, 2018, were $15,624. 6. Research and development costs incurred as of September 1, 2018, were $94,200. Your answer is partially correct. Try again. Prepare the journal entries to record all the entries related to the patent during 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit January 2, 2018 Patents 78,200 Cash 78,200 July 1, 2018 Patents 15,624 Cash 15,624 | December 31, 2018 - Amortization Expense 16699 December 31, 2018 Amortization Expense 16699 Patent Expense 16699 Your answer is partially correct. Try again. At December 31, 2018, an impairment test is performed on the license purchased in 2017. It is estimated that the net cash flows to be received from the license will be $18,400, and its fair value is $21,000. Compute the amount of impairment, if any, to be recorded on December 31, 2018. Loss 21,000 on impairment x Your answer is incorrect. Try again. What is the amount to be reported for intangible assets on the balance sheet at December 31, 2017? At December 31, 2018? December 31, 2017 December 31, 2018 Amount to be reported 18750 900000 Click if you would like to Show Work for this question: Open Show Work