This is my 3rd attempt to get a question answered. Here we go again.. My question is related to the patents. The company purchased 500,000. are the steps for amoritizing

This is my 3rd attempt to get a question answered. Here we go again.. My question is related to the patents. The company purchased 500,000. are the steps for amoritizing on a straight-line basis with no salvage value? The estimated useful life of patents is 30 years and on December 31 2020 the value of the patent is estimated to be 100,000. I think it is a decline however unsure of how to show it on the journal. Transcribed Image Text: Brown Company paid cash to purchase the assets of Coffee Company
on January 1, 2019. Information is as follows:
Total cash paid
Assets acquired:
S3,500,000
s800,000
$500,000
S900,000
$500,000
Land
Building
Machinery
Patents
The building is depreciated using the double-dedining balance
method. Other information is:
Salvage value
Estimated useful life in years
$50,000
40
The machinery is depreciated using the units-of-production method.
Other information is:
10%
Salvage value, percentage of cost
Estimated total production output in
Actual production in units was as
200,000
40,000
60,000
20,000
2019
2020
2021
The patents are amortized on a straight-line basis. They have no salvage valu.
Estimated useful life of patents in
30
On December 31, 2020, the value of the
patents was estimated to be
$100,000
Where applicable, the company uses the % year rule to calculate
depreciation and amortization expense in the years of acquisition
and disposal. Its fiscal year-end is December 31.
The machinery was traded on December 2, 2021 for new machinery.
Other information is:
Fair value of old machinery
$240,000
Trade-in allowance
$288,000
List price for new machinery
Estimated useful life of new machinery in
$403,200
20
Estimated salvage value of new
The new machinery is depreciated using the straight-line method and
$8,084
On August 14, 2023, an addition was made. This amount was
material. Other relevant information is as follows:
Amount of addition, paid in cash
$100,000
Number of years of useful life from 2023
(original machinery and addition):
Salvage value, percentage of addition
30
10%
Required: Prepare journal entries to record:
1 The purchase of the assets of Coffee.
2 Depreciation and amortization expense on the purchased assets for 2019.
3 The decline (if any) in value of the patents at December 31
4 The trade-in of the old machinery and purchase of the new
5 Depreciation on the new machinery for 2021.
6 Cost of the addition to the machinery on August 14, 2023.
7 Depreciation on the new machinery for 2023.