Journal entries for patent sale
Amplify Inc. purchased a patent on September 1, 2020 for $ 41,080. At the time of purchase, Amplify estimated that the patent's economic benefits would last until the end of 2024. Amplify's fiscal year end is December 31. On April 1, 2023, Amplify sold the patent to another company.
Instructions
a) Prepare the journal entry to record the sale, assuming Amplify sold the patent for $ 21,690.
b) Prepare the journal entry to record the sale, assuming Amplify sold the patent for $ 12,240.

Question

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The Answer of Journal entries for patent sale
Amplify Inc. purchased a patent on September 1, 2020 for $ 41,080. At the time of purchase, Amplify estimated that the patent's economic benefits would last until the end of 2024. Amplify's fiscal year end is December 31. On April 1, 2023, Amplify sold the patent to another company.
Instructions
a) Prepare the journal entry to record the sale, assuming Amplify sold the patent for $ 21,690.
b) Prepare the journal entry to record the sale, assuming Amplify sold the patent for $ 12,240.

Journal Entries for Patent Sale