A. Timber rights on a tract of land were purchased for $1,762,820 on February 22. The stand
Question:
A. Timber rights on a tract of land were purchased for $1,762,820 on February 22. The stand of timber is estimated at 4,639,000 board feet. During the current year, 1,068,200 board feet of timber were cut and sold.
B. On December 31, the company determined that $4,015,000 of goodwill was impaired.
C. Governmental and legal costs of $6,846,000 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:
Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items.
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.
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson