Data related to the acquisition of timber rights and intangible

assets during the current year ended December $31$ are as follows: A$.$

Timber rights on a tract of land were purchased for $$3,589,500$ on

February $22.$ The stand of timber is estimated at $4,786,000$ board

feet. During the current year, $1,127,100$ board feet of timber were

cut and sold. B$.$ On December $31,$ the company determined that

$$3,599,000$ of goodwill was impaired. C$.$ Governmental and legal

costs of $$7,140,000$ were incurred on April $3$ in obtaining a patent

with an estimated economic life of $10$ years. Amortization is to be

for three$-$fourths of a year. Required: $1.$ Determine the amount of

the amortization, depletion, or impairment for the current year for

each of the foregoing items. $2.$ Journalize the adjusting entries

required to record the amortization, depletion, or impairment for

each item. Refer to the Chart of Accounts for exact wording of

account titles$\mathrm{.}1.$ Determine the amount of the amortization, depletion, or

impairment for the current year for each of the items in the

Instructions.$2.$ Journalize the transactions and the adjusting entries on

December $31.$ Refer to the Chart of Accounts for exact wording of

account titles. Scroll down to access pages $2$ through $3$ of the

journal.a$.$ Timber rights on a tract of land were purchased for

$$3,589,500$ on February $22.$ The stand of timber is estimated at

$4,786,000$ board feet. During the current year, $1,127,100$ board feet

of timber were cut and sold.PAGE $1$JOURNALACCOUNTING EQUATION$1$Adjusting Entries$23$b$.$ On December $31,$ the company determined that $$3,599,000$

of$$goodwill$$was impaired.PAGE $2$JOURNALACCOUNTING EQUATION$1$Adjusting Entries$23$c$.$ Governmental and legal costs of $$7,140,000$ were incurred on

April $3$ in obtaining a$$patent$$with an estimated economic

life of $10$ years. Amortization is to be for three$-$fourths of a

year.PAGE $3$JOURNALACCOUNTING EQUATION$1$Adjusting Entries$23$