Option #2: Accounting for Intangible Assets and Natural Resources Part 1 a. Assume you are the chief accountant of Exxon Mobil. Describe to the Board of Directors the accounting for natural resources, including their acquisition, and cost allocation (depletion). Use a real-world example to explain your answers. b. Assume you are the chief accountant of Microsoft Corporation, Describe to the Board of Directors the accounting for intangible assets, including their acquisition and cost allocation (amortization). Use an example in your explanations. c. On June 1, ABC Inc. purchased a patent for $75,000 with a useful life of 10 years. Prepare the journal entry to amortize the patent at the end of the first year assuming ABC Inc. follows a calendar year. d. On January 4, ABC Inc. purchased a music distributor's collection of lyrics and songs for $425,000. The copyrights are expected to last another ten years. Prepare the journal entry to amortize the copyright at the end of the first year. Part 2 For each iter listed below, enter a code letter in the blank space to indicate the usage allocation terminology for the item. Use the following codes for your answer: A-Amortization p-Depletion D-Depreciation N-None of these 1. Goodwill 7. Timberlands 2. Land 8. Franchises (Indefinite life) 3. Buildings - 9. Licenses (limited life) 4. Patents 10. Land Improvements 5. Copyrights - 11. Oil Deposits 6. Research and development costs 12. Equipment AB ACT300 Principles of Accounting! Module 6: Critical Thinking Template Option 2 ABC, Inc. Journal Entries Account Name Debit Credit in innom