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On July 1, 2018, Novak Company purchased a patent from Wildhorse Co. for $8000000. It...

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On July 1, 2018, Novak Company purchased a patent from Wildhorse Co. for $8000000. It was estimated that the patent has a remaining useful life of 4 years. On July 1, 2022, Novak retired the asset. Use the following tabular analysis to make the adjustment for retirement assuming that the cost has been fully amortized. Assets Liabilities + Accounts Payable Stockholders' Equity Common Retained Earnings Stock Rev. Exp. - Div. Cash + Patents = + + The Patent account would have a zero balance so no entry would be needed. O Increase Revenues and decrease Patents $8000000. Decrease Patents and increase Expenses $1000000. O Increase Expenses and decrease Patents $2000000

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