The following information relates to a patent owned by Gentry Company:

Carrying amount 1,700,000

Fair value 1,200,000

Instructions

(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019.

(b) Using the same assumption as part (a) above, prepare the journal entry to record amortization expense for 2020 assuming the asset has a remaining useful life of 3 years at the beginning of 2020.