Answer:
The journal entry for recording the loss on the impairment is shown below:
Explanation:
Loss on Impairment A/c..........................Dr $137,000
Patent A/c......................................Cr $137,000
For recording the impairment, the loss or expense on the impairment is debit Therefore, loss on impairment is debited and the underlying asset is credited. So, the Patent account is credited.
Working note:
Impairment loss = Carrying amount - Fair value
where
Carrying amount is $300,000
fair value is $163,000
So,
= $300,000 - $163,000
= $137,000
