On January 1,2017,Gordon Company Purchased a Patent for $420,000 from an Inventor

Essay

On January 1,2017,Gordon Company purchased a patent for $420,000 from an inventor who had developed a new manufacturing process.At the time of the purchase,the patent had a remaining useful life of 10 years.
A.Prepare the journal entry to record Gordon's purchase of the patent.
B.Prepare the journal entry to record amortization of the patent on December 31,2017.
C.At the end of 2020,after amortization had been recorded through December 31,2020,Gordon concluded that the estimated future cash flows from the patent to be $250,000.The patent's estimated fair value on December 31,2020 was $200,000.Prepare the journal entry to record the patent impairment,if necessary.