8. Long Lived Assets

Sprinting Printers, Inc. purchased a patent on a high-tech laser printer for \(750,000. The patent gives legal protection for twenty years, but Sprinting Printers believes that competitors will be able to mimic its capabilities in fifteen years. SP uses the straight-line method when amortizing the printer. After ten years, SP discovers that a competitor has created a more efficient holo-printer. At this point, SP determines that the estimated future cash flows of the printer are \)200,000. The fair value of the patent is zero on the open market. The entry to record the discovery of the new holo-printer would include: