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 $2,070,000 on February 22. The stand of timber is estimated at 9,000,000 board feet. During the current year, 2,400,000 board feet of timber were cut and sold. On December 31, the company determined that $1,090,000 of goodwill was impaired. Governmental and legal costs of $13,248,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 12 years. Amortization is to be for three-fourths of a year. Required: 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 fa2232f9601bfce_1 b. $fill in the blank fa2232f9601bfce_2 c. $fill in the blank fa2232f9601bfce_3 2. Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item. a. fill in the blank 960260f4902501f_2 fill in the blank 960260f4902501f_4 b. fill in the blank 960260f4902501f_6 fill in the blank 960260f4902501f_8 c. fill in the blank 960260f4902501f_10 f
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 $2,070,000 on February 22. The stand of timber is estimated at 9,000,000 board feet. During the current year, 2,400,000 board feet of timber were cut and sold. On December 31, the company determined that $1,090,000 of goodwill was impaired. Governmental and legal costs of $13,248,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 12 years. Amortization is to be for three-fourths of a year. Required: 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 fa2232f9601bfce_1 b. $fill in the blank fa2232f9601bfce_2 c. $fill in the blank fa2232f9601bfce_3 2. Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item. a. fill in the blank 960260f4902501f_2 fill in the blank 960260f4902501f_4 b. fill in the blank 960260f4902501f_6 fill in the blank 960260f4902501f_8 c. fill in the blank 960260f4902501f_10 f
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $2,070,000 on February 22. The stand of timber is estimated at 9,000,000 board feet. During the current year, 2,400,000 board feet of timber were cut and sold.
- On December 31, the company determined that $1,090,000 of
goodwill was impaired. - Governmental and legal costs of $13,248,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 12 years. Amortization is to be for three-fourths of a year.
Required:
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 fa2232f9601bfce_1 b. $fill in the blank fa2232f9601bfce_2 c. $fill in the blank fa2232f9601bfce_3 2. Journalize the
adjusting entries required to record the amortization, depletion, or impairment for each item.a. fill in the blank 960260f4902501f_2 fill in the blank 960260f4902501f_4 b. fill in the blank 960260f4902501f_6 fill in the blank 960260f4902501f_8 c. fill in the blank 960260f4902501f_10 fill in the blank 960260f4902501f_12
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