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 iPod connectivity. Record the transaction. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit 2400000 Patent Cash 2400000 In the first year, 10,400 units were sold. All costs per unit totalled $850. Record the cost of sales transaction. Journal Entry Date Accounts Debit Credit Cost of Sales Durtan will sell the integrated system as an "extra" for $1,000. In the first year, 10,400 units were sold. Record the sale of the integrated systems, assuming all sales were on account Journal Entry Date Accounts Debit Credit Durtan paid $2.4 million for the patent related to an integrated system and expects to install this system in its automobiles for eight years. Record the amortization of the patent for the first year. (Round the final answer to the nearest whole number.) Journal Entry Date Accounts Debit Credit Requirement 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%. (Round to the nearest whole dollar.) Income before tax Income Statement - Integrated System For Year 1 Gross profit Net income Evaluate the profitability of the integrated system's operations. The integrated system operations were v. Net income of Requirement 3. Explain what items were recorded as assets and why. The value of should be recorded as Vasset as Durtan has the exclusive right to use it in production V. Since its expected useful life is . it should