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Exercise 7-Patent impairment. (9 points) The following information relates to a patent owned by Gentry...

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Exercise 7-Patent impairment. (9 points) The following information relates to a patent owned by Gentry Company at December 31, 2016 Cost Carrying amount Expected future net cash flow Fair value $3,400,000 1,700,000 1,500,000 1,200,000 Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2016, assuming Gentry will continue to use the asset in the future. (b) Using the same assumption as part (a) above, prepare the journal entry to record amortization expense for 2017 assuming the asset has a remaining useful life of 3 years at the beginning of 2017 (c) Using the same assumption as part (a) above, prepare the journal entry (if any) at December 31, 2017, assuming the fair value of the asset has increased to $1,900,000 at December 31, 2017

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