Amortization and Depletion Entries Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: Timber rights on a tract of land were purchased for $980,000 on February 22. The stand of timber is estimated at 7,000,000 board feet. During the current year, 1,900,000 board feet of timber were cut and sold. On December 31, the company determined that $950,000 of goodwill was impaired. Governmental and legal costs of $5,320,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 10 years. Amortization is to be for three-fourths of a year. Required: Question Content Area 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. Do not round your intermediate calculation. Item Impairment, Amortization or Depletion Expense a. $fill in the blank c7eb12f61f8e034_1 b. $fill in the blank c7eb12f61f8e034_2 c. $fill in the blank c7eb12f61f8e034_3 Question Content Area 2. Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item. a. Accumulated DepletionCashDepletion ExpenseTimber Rights - Select - Accumulated DepletionCashDepletion ExpenseTimber Rights - Select - b. Amortization Expense-GoodwillCashGoodwillLoss on Impairment of Goodwill - Select - Amortization Expense-GoodwillCashGoodwillLoss on Impairment of Goodwill - Select - c. Amortization Expense-PatentsCashLoss on PatentPatents - Select - Amortization Expense-PatentsCashLoss on PatentPatents

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11EB: The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining...

See similar textbooks

Related questions

Question

Amortization and Depletion Entries

Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows:

Timber rights on a tract of land were purchased for $980,000 on February 22. The stand of timber is estimated at 7,000,000 board feet. During the current year, 1,900,000 board feet of timber were cut and sold.
On December 31, the company determined that $950,000 of goodwill was impaired.
Governmental and legal costs of $5,320,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 10 years. Amortization is to be for three-fourths of a year.

Required:

Question Content Area

1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. Do not round your intermediate calculation.

Item	Impairment, Amortization or Depletion Expense
a.	$fill in the blank c7eb12f61f8e034_1
b.	$fill in the blank c7eb12f61f8e034_2
c.	$fill in the blank c7eb12f61f8e034_3

Question Content Area

2. Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item.

a.	Accumulated DepletionCashDepletion ExpenseTimber Rights	- Select -
	Accumulated DepletionCashDepletion ExpenseTimber Rights		- Select -
b.	Amortization Expense-GoodwillCashGoodwillLoss on Impairment of Goodwill	- Select -
	Amortization Expense-GoodwillCashGoodwillLoss on Impairment of Goodwill		- Select -
c.	Amortization Expense-PatentsCashLoss on PatentPatents	- Select -
	Amortization Expense-PatentsCashLoss on PatentPatents		- Select -

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions