On July 15, 2016, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $ 750,000 and $ 325,000, respectively. The book value of the patent and equipment on the date of sale were $ 120,000 and $ 400,000 (cost of $ 550,000 less accumulated depreciation of $ 150,000), respectively.
Required:
Prepare the journal entries to record the sales of the patent and equipment.