Suppose Durtan paid $2.4 million for a patent related to an integrated system, including hands-free cell phone, GPS, and iPod connectivity. The company expects to install this system in its automobiles for eight years. Durtan will sell this as an "extra" for $1,000. In the first year, 10,400 units were sold. All costs per unit totalled $850. Required 1. As the CFO, how would you record transactions relating to the patent in the first year? 2. Prepare the income statement for the integrated system's operations for the first year. Evaluate the profitability of the integrated system's operations. Use an income tax rate of 32%. 3. Explain what items were recorded as assets and why. Requirement 1. As the CFO, how would you record transactions relating to the patent in the first year? Durtan paid $2.4 million for a patent related to an integrated system, including hands-free cell phone, GPS, and iPad connectivity. Record the transaction. (Record debits first, then credits. Explanations are not required.) Date Journal Entry Accounts Debit Credit In the first year, 10,400 units were sold. All costs per unit totalled $850. Record the cost of sales transaction. Date Journal Entry Accounts Debit Credit