2023 Data related to the acquisition of timber rights and intangible assets during | Assignments Online

Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows:

 

a. On December 31, the company determined that $20,000,000 of goodwill was impaired.

 

b. Governmental and legal costs of $675,000 were incurred on June 30 in obtaining a patent with an estimated economic life of 10 years. Amortization is to be for one-half year.

 

c. Timber rights on a tract of land were purchased for $1,665,000 on February 16. The stand of timber is estimated at 9,000,000 board feet. During the current year, 2,400,000 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.

 

2. Journalize the adjusting entries to record the amortization, depletion, or impairment for each item.