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 $770,000 of goodwill was impaired.

Governmental and legal costs of $11,040,000 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.

Timber rights on a tract of land were purchased for $2,040,000 on February 4. The stand of timber is estimated at 8,500,000 board feet. During 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	Impairment, Amortization or Depletion Expense
a.
b.
c.

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.

Transaction	Account	Debit	Credit
a.	Amortization Expense-GoodwillCashGain on Impairment of GoodwillGoodwillLoss from Impaired Goodwill
	Amortization Expense-GoodwillCashGain on Impairment of GoodwillGoodwillLoss from Impaired Goodwill
b.	Accounts PayableAccounts ReceivableAmortization Expense-PatentsCashPatents
	Accounts PayableAccounts ReceivableAmortization Expense-PatentsCashPatents
c.	Accounts PayableAccumulated DepletionCashDepletion ExpenseTimber Rights
	Accounts PayableAccumulated DepletionCashDepletion ExpenseTimber Rights