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: On December 31, the company determined that $1,030,000 of goodwill was impaired. Governmental and legal costs of $12,960,000 were incurred on September 30 in obtaining a patent with an estimated economic life of 15 years. Amortization is to be for one-fourth of a year. Timber rights on a tract of land were purchased for $1,560,000 on February 4. The stand of timber is estimated at 6,500,000 board feet. During the current year, 1,800,000 board feet of timber were cut and sold. 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 010092f4ffd4074_1 b. $fill in the blank 010092f4ffd4074_2 c. $fill in the blank 010092f4ffd4074_3 2. Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item. a. fill in the blank a28578fa1fcc05d_2 fill in the blank a28578fa1fcc05d_3 fill in the blank a28578fa1fcc05d_5 fill in the blank a28578fa1fcc05d_6 b. fill in the blank a28578fa1fcc05d_8 fill in the blank a28578fa1fcc05d_9 fill in the blank a28578fa1fcc05d_11 fill in the blank a28578fa1fcc05d_12 c. fill in the blank a28578fa1fcc05d_14 fill in the blank a28578fa1fcc05d_15 fill in the blank a28578fa1fcc05d_17 fill in the blank a28578fa1fcc05d_18

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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:

On December 31, the company determined that $1,030,000 of goodwill was impaired.
Governmental and legal costs of $12,960,000 were incurred on September 30 in obtaining a patent with an estimated economic life of 15 years. Amortization is to be for one-fourth of a year.
Timber rights on a tract of land were purchased for $1,560,000 on February 4. The stand of timber is estimated at 6,500,000 board feet. During the current year, 1,800,000 board feet of timber were cut and sold.

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 010092f4ffd4074_1
b.	$fill in the blank 010092f4ffd4074_2
c.	$fill in the blank 010092f4ffd4074_3

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

a.	fill in the blank a28578fa1fcc05d_2	fill in the blank a28578fa1fcc05d_3
	fill in the blank a28578fa1fcc05d_5	fill in the blank a28578fa1fcc05d_6
b.	fill in the blank a28578fa1fcc05d_8	fill in the blank a28578fa1fcc05d_9
	fill in the blank a28578fa1fcc05d_11	fill in the blank a28578fa1fcc05d_12
c.	fill in the blank a28578fa1fcc05d_14	fill in the blank a28578fa1fcc05d_15
	fill in the blank a28578fa1fcc05d_17	fill in the blank a28578fa1fcc05d_18

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