Hello, what is the answer/solution to this question?Amortization and Depletion EntriesData 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 $880,000 on February 22. The stand of timber is estimated at 5,500,000 board feet. During the current year, 1,500,000 board feet of timber were cut and sold.On December 31, the company determined that $1,160,000 of goodwill was impaired.Governmental and legal costs of $7,200,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 15 years. Amortization is to be for three-fourths of a year.Required:1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. Do not round your intermediate calculation.ItemImpairment, Amortization or Depletion Expensea.$fill in the blank db5389f0f078051_1b.$fill in the blank db5389f0f078051_2c.$fill in the blank db5389f0f078051_32. Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item.a. fill in the blank 671ff2ffe032ff9_2 fill in the blank 671ff2ffe032ff9_4b. fill in the blank 671ff2ffe032ff9_6 fill in the blank 671ff2ffe032ff9_8c. fill in the blank 671ff2ffe032ff9_10 fill in the blank 671ff2ffe032ff9_12

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Answered: Determine the amount of the…

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...

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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 $880,000 on February 22. The stand of timber is estimated at 5,500,000 board feet. During the current year, 1,500,000 board feet of timber were cut and sold.
On December 31, the company determined that $1,160,000 of goodwill was impaired.
Governmental and legal costs of $7,200,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 15 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 db5389f0f078051_1
b.	$fill in the blank db5389f0f078051_2
c.	$fill in the blank db5389f0f078051_3

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

a.	fill in the blank 671ff2ffe032ff9_2
		fill in the blank 671ff2ffe032ff9_4
b.	fill in the blank 671ff2ffe032ff9_6
		fill in the blank 671ff2ffe032ff9_8
c.	fill in the blank 671ff2ffe032ff9_10
		fill in the blank 671ff2ffe032ff9_12

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