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: Timber rights on a tract of land were purchased for $1,330,000 on February 22. The stand of timber is estimated at 7,000,000 board feet. During the current year, 1,900,000 board feet of timber were cut and sold. On December 31, the company determined that $1,280,000 of goodwill was impaired. Governmental and legal costs of $10,830,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 15 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. Do not round your intermediate calculation. Item Impairment, Amortization or Depletion Expense a. $ b. $ c. $ 2.  Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item. a.               b.               c.

Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $656,250 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $96,100. Required: 1.  Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a.  Straight-line method Year DepreciationExpense Accumulated Depreciation,End of Year Book Value,End of Year 1 $fill in the blank 6c5ae1f44078fe7_1 $fill in the blank 6c5ae1f44078fe7_2 $fill in the blank 6c5ae1f44078fe7_3 2 $fill in the blank 6c5ae1f44078fe7_4 $fill in the blank 6c5ae1f44078fe7_5 $fill in the…

A plant asset was purchased on January 1 for $120000 with an estimated salvage value of $10000 at the end of its useful life. The current year's Depreciation Expense is $10000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $60000. The remaining useful life of the plant asset is 5 years. O. 11 years. O 12 years. O 7 years.

Disposal of fixed asset Equipment acquired on January 6 at a cost of $386,400 has an estimated useful life of 10 years and an estimated residual value of $50,400. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $271,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. January 3 d. Assuming that the equipment had been sold on January 3 of Year 4 for $291,300 instead of $271,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. January 3