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: a. On December 31, the company determined that $790,000 of goodwill was impaired. b. Governmental and legal costs of $8,832,000 were incurred on September 30 in obtaining a patent with an estimated economic life of 12 years Amortization is to be for one-fourth of a year. c. Timber rights on a tract of land were purchased for $1,360,000 on February 4. The stand of timber is estimated at 8,500,000 board feet. Durin the current year, 2,300,000 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 a. b. Impairment, Amortization or Depletion Expense 790,000 184,000 322,400 X Check My Work Intangible assets with indefinite lives are tested annually for impairment. Intangible assets with definite lives are amortized using the straight-line method. The depletion rate stays constant. 2. Journalize the adjusting entries to record the amortization, depletion, or impairment for each item. If an amount box does not require an entry, leave it blank. a. Loss from Impaired Goodwill 790,000 790,000 Goodwill b. Amortization Expense-Patents 184,000 V Patents 184,000 c. Depletion Expense 322,400 X Accumulated Depletion 14,375,000 X Feedback Check My Work Is the intangible tested for impairment or amortized? Does the asset use a contra asset account?