Data related to the acquisition of timber rights and intangible assets of Gemini Company during the current year ended December 31 are as follows: a. On December 31, Gemini Company determined that $3,000,000 of goodwill was impaired. b. Governmental and legal costs of $920,000 were incurred by Gemini Company on June 30 in obtaining a patent with an estimated economic life of eight years. Amortization is to be for one-half year. C. Timber rights on a tract of land were purchased for $1,350,000 on March 6. The stand of timber is estimated at 15,000,000 board feet. During the current year, 3,300,000 board feet of timber were cut and sold. Instructions: 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. Item Amortization, Depletion, or Impairment a. $ 3,000,000 b. $ C. 2. Illustrate the effects on the accounts and financial statements of recording the following transactions. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. a. On December 31, Gemini Company determined that $3,000,000 of goodwill was impaired. Balance Sheet Assets = Liabilities + Stockholders' Equity Goodwill + No effect = No effect + Retained earnings Dec. 31. 0 0 Statement of Cash Flows Income Statement No effect Loss from impaired goodwill b. Governmental and legal costs of $920,000 were incurred by Gemini Company on June 30 in obtaining a patent with an estimated economic life of eight years. Amortization is to be for one-half year. Balance Sheet Assets Liabilities + Stockholders' Equity Patents + No effect No effect + Retained earnings Dec. 31. 0 0 Statement of Cash Flows Income Statement No effect Amortization expense - patents c. Timber rights on a tract of land were purchased for $1,350,000 on March 6. The stand of timber is estimated at 15,000,000 board feet. During the current year, 3,300,000 board feet of timber were cut and sold. Balance Sheet Assets Liabilities + Stockholders' Equity Accumulated depletion + No effect = No effect + Retained earnings Dec. 31. 0 o Statement of Cash Flows Income Statement No effect 0 Depletion expense