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 Patents Cash Record (b) the amortization of the patent for year 1 Journal Entry Date Accounts Debit Credit Amortization Expense-Patents Patents Requirement 2. Once Murley learned 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 journal 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 cells blank.) Journal Entry Accounts Credit Date Debit Impairment Loss on Patents Patents Miracle Printers incurred external costs of $600,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it was expected to provide Miracle with a competitive advantage for only eight years due to expected technological advances in the industry. Miracle uses the straight-line method of amortization i (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 Requirements More Info 1. Make journal entries to record (a) the purchase of the patent and (b) amortization for year 1 After using the patent for four years, Miracle 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, Miracle determined that the expected future cash flows from its patent were now only $210,000. The fair value 2. Once Miracle learned 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 of Miracle's patent on the open market was now zero Print Done Print Done