
(a)
Concept Introduction:
The fixed assets are of two types, one is tangible and other is intangible. The intangible assets are those which cannot be touched i.e. no physical presence. The
The effects of amount of impairment of goodwill for the current year on the account and financial statement.

Answer to Problem 7.5.2P
The impairment of goodwill amounts to
Explanation of Solution
Income Statement
for the year ended December
Particulars | | Amount |
Loss from impaired goodwill | |
for the year ended December
| Amount | |
Assets | ||
Goodwill | | |
Liabilities and Stockholder's equity | ||
Stockholder's equity: | ||
Retained earnings | |
(b)
Concept Introduction:
The fixed assets are of two types, one is tangible and other is intangible. The intangible assets are those which cannot be touched i.e. no physical presence. The goodwill, patents, and rights are examples of intangible assets and these are not depreciated but amortized according to their economic life.
The amount of amortization of patent for the current year on the account and financial statement.

Answer to Problem 7.5.2P
The amortization of patent amounts to
Explanation of Solution
Income Statement
for the year ended December
Particulars | | Amount |
Amortization of patents | |
Balance Sheet
for the year ended December
| Amount | |
Assets | ||
Less: Amortization expense from patent | | |
Liabilities and Stockholder's equity | ||
Stockholder's equity: | ||
Retained earnings | |
(c)
Concept Introduction:
The fixed assets are of two types, one is tangible and other is intangible. The intangible assets are those which cannot be touched i.e. no physical presence. The goodwill, patents, and rights are examples of intangible assets and these are not depreciated but amortized according to their economic life.
The amount of depletion of timber rights for the current year on the account and financial statement.

Answer to Problem 7.5.2P
The depletion expenses of rights amount to
Explanation of Solution
Income Statement
for the year ended December
Particulars | | Amount |
Depletion expenses | |
Balance Sheet
for the year ended December
| Amount | |
Assets | ||
Less: Accumulated depletion expenses | | |
Liabilities and Stockholder's equity | ||
Stockholder's equity: | ||
Retained earnings | |
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Chapter 7 Solutions
Survey of Accounting - With CengageNOW 1Term
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