Sky Co$.$organized in $2025,$ provided you with the following info$\mathrm{.}1.$ Purchased a license for $$20,000$ on July $1,2025.$ The license gives Sky exclusive rights to sell its services in the tri$-$state region and will expire on July $1,2033\mathrm{.}2\mathrm{.}3.$Purchased a patent on Jan $2,2026,$ for $$40,000.$ It is estimated to have a $5-$year life.Costs incurred to develop an exclusive Internet connection process as of June $1,2026,$ were $$45,000.$ The process has an indefinite life$\mathrm{.}4.$ On July $1,2026,$ legal fees for successful defense of the patent purchased onJanuary $2,2026,$ were $$11,400.$R&D costs incurred as of September $1,2026,$ were $$75,000.$INSTRUCTIONS $[$round your answers to the nearest dollar$]$At December $31,2026,$ an impairment test is performed on the license purchased in$2025.$ It is estimated that the net cash flows to be received from the license will be $$13,000,$ and its fair value is $$7,000.$

Compute the amount of impairment and prepare the impairment journal entry, if any, to be recorded on December $31,2026.$ 

a$.$What is the Book Value of the patent as at December $31,2026?$

b$.$ What is the Book Value of the license as at December $31,2026?$