Question: Sunland Corporation owns a patent that has a carrying amount of $347,000. Sunland expects future net cash flows from this patent to total $208,000 over

Sunland Corporation owns a patent that has a carrying amount of $347,000. Sunland expects future net cash flows from this patent to total $208,000 over its remaining life of 10 years. The recoverable amount of the patent is $113,000. Assume that at the end of the year following the impairment (after recording amortization expense), the estimated recoverable amount for the patent is $137,000. Prepare Sunlands journal entry, if needed.

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