Reference no: EM132955114

Problem - On January 2, 2019 Pharma Co. purchased a patent for a new consumer vaccine for $120,000. At the time of purchase, the patent was valid for 14 years; however, the patent's useful life was estimated to be only 10 years due to the competitive nature of the product. Thus, the depreciation method was used based on the estimated life. On December 31, 2022 the product was permanently withdrawn from sale under governmental order because of a potential health hazard in the product. Thus, the patent became completely useless. Journalize any loss on impairment that Pharma Co. should record in 2022 related to this patent.