Sanders Company purchased the following on January 1, 2019: Office equipment at a cost of $52,000 with an estimated useful life to the company of three years and a residual value of $15,600. The company uses the double-declining-balance method of depreciation for the equipment. Factory equipment at an invoice price of $733,200 plus shipping costs of $29,000. The equipment has an estimated useful life of 103,000 hours and no residual value. The company uses the units-of-production method of depreciation for the equipment. A patent at a cost of $465,000 with an estimated useful life of 15 years. The company uses the straight-line method of amortization for intangible assets with no residual value. The company's year ends on December 31.

Required: 1-a. Prepare a partial depreciation schedule of office equipment for 2019, 2020, and 2021.

Year	Depreciation Expense	Accumulated Depreciation	Net Book Value
2019
2020
2021

1-b. Prepare a partial depreciation schedule of factory equipment. The company used the equipment for 8,100 hours in 2019, 9,300 hours in 2020, and 9,000 hours in 2021.

Year	Depreciation Expense	Accumulated Depreciation	Net Book Value
2019
2020
2021

2. On January 1, 2022, Sanders altered its corporate strategy dramatically. The company sold the factory equipment for $645,280 in cash. Record the entry related to the sale of the factory equipment.

Transaction	General Journal	Debit	Credit
1

3. On January 1, 2022, when the company changed its corporate strategy, its patent had estimated future cash flows of $341,000 and a fair value of $323,000. What would the company report on the income statement (account and amount) regarding the patent on January 1, 2022? Was it an impairment gain or impairment loss?