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Potions, Inc. sold its patents for $10,000. The book value of these patents was $9,000. As a result of this sale, Potions will record

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Final answer:

When Potions, Inc. sold its patents for $10,000 with a book value of $9,000, it recorded a gain of $1,000, which represents the difference between the selling price and the book value of the patents.

Step-by-step explanation:

When Potions, Inc. sold its patents for $10,000, and the book value of these patents was $9,000, it will record a gain on the sale of $1,000. The gain will be recorded on the income statement as a non-operating income. This gain represents the difference between the selling price of the patents and their book value.

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