Intangible asset impairment
Picot Collective purchases a patent on January 1, 2015 for $ 118,800. At the time of purchase, Picot estimated that the patent had a useful life of 12 years. Picot used the straight-line method to amortize the patent, and annual impairment tests showed no impairment of the patent's value. On January 1, 2020, Picot sold the patent for $ 84,600.
Instructions
Prepare the journal entry to record the sale of the patent.

Question

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The Answer of  Intangible asset impairment
Picot Collective purchases a patent on January 1, 2015 for $ 118,800. At the time of purchase, Picot estimated that the patent had a useful life of 12 years. Picot used the straight-line method to amortize the patent, and annual impairment tests showed no impairment of the patent's value. On January 1, 2020, Picot sold the patent for $ 84,600.
Instructions
Prepare the journal entry to record the sale of the patent.

Intangible Asset Impairment Picot Collective Purchases a Patent on January 1, 2015 for 1