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 $1,240,000 of goodwill was impaired. b. Governmental and legal costs of $5,712,000 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 $850,000 on February 4. The stand of timber is estimated at 5,000,000 board feet. During the current year, 1,400,000 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 $ 1,240,000 V 571,200 X C. 238,000 Feedback 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 required to record the amortization, depletion, or impairment for each item. a. Loss on Impairment of Goodwill 1,240,000 Goodwill 1,240,000 b. Amortization Expense-Patents 571,200 X Patents 142,800 X Depletion Expense 238,000 V Accumulated Depletion 238,000