On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and

Question:

On July 15, 2018, 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. Prepare the journal entries to record the sales of the patent and equipment.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...