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:

1. On December 31, the company determined that $1,180,000 of goodwill was impaired.
2. Governmental and legal costs of $5,440,000 were incurred on September 30 in obtaining a patent with an estimated economic life of 10 years. Amortization is to be for one-fourth of a year.
3. Timber rights on a tract of land were purchased for $1,020,000 on February 4. The stand of timber is estimated at 6,000,000 board feet. During the current year, 1,600,000 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 4be76bf99fdf03e_1
b.	$fill in the blank 4be76bf99fdf03e_2
c.	$fill in the blank 4be76bf99fdf03e_3

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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	fill in the blank 631f29f73f8803c_2	fill in the blank 631f29f73f8803c_3
	Goodwill	fill in the blank 631f29f73f8803c_5	fill in the blank 631f29f73f8803c_6
b.	Amortization Expense-Patents	fill in the blank 631f29f73f8803c_8	fill in the blank 631f29f73f8803c_9
	Patents	fill in the blank 631f29f73f8803c_11	fill in the blank 631f29f73f8803c_12
c.	Depletion Expense	fill in the blank 631f29f73f8803c_14	fill in the blank 631f29f73f8803c_15
	Accumulated Depletion	fill in the blank 631f29f73f8803c_17	fill in the blank 631f29f73f8803c_18