A company sells a patent obtained 5 years ago. The cost of the patent when it was obtained was 2 million yuan. It was amortized over 10 years. When it was sold, it received an income of 1.4 million yu

A company sells a patent obtained 5 years ago. The cost of the patent when it was obtained was 2 million yuan. It was amortized over 10 years. When it was sold, it received an income of 1.4 million yuan. The operating cost was 2 million yuan.

When an enterprise sells intangible assets, the difference between the price obtained and the book value of the intangible assets shall be included in the current profits and losses (non-operating income or non-operating expenses).

The amortization period is 10 years, and the straight-line method is used for amortization. It has been amortized for 5 years, and the cumulative amortization is (200÷10×5).

Intangible assets Book value = 200 - (200÷10×5),

The income obtained when selling is 1.4 million yuan, the business tax rate is 5%, the business tax payable = 140×5%

Sale Impact on profit and loss = 140-[200-(200÷10×5)]-140×5%=33 (ten thousand yuan).

The accounting treatment is:

Debit: bank deposit 140

Cumulative amortization 100

Credit: intangible assets 200

Taxes payable - business tax payable 7

Non-operating income - gains from disposal of non-current assets 33