Exercises: Set Instructions (a) Prepare the journal entry to record depletion. (b) Assume that the 100,000 tons of ore were mined, but only 80,000 units were sold. Ho are the costs applicable to the 20,000 unsold units reported? E10-12 The following are selected 2017 transactions of Pedigo Corporation. Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. Purchased for $75,000 a patent with an estimated useful life of 5 years and a legal life of 20 years. May 1 Instructions Prepare necessary adjusting entries at December 31 to record amortization required by the events above en0-13 Gill Company, organized in 2017, has the following transactions related to intan- gible assets. Purchased patent (7-year life) Goodwill purchased (indefinite life) 10-year franchise; expiration date 7/1/2027 Research and development costs $595,000 360,000 480,000 185,000 9/1/17 Instructions ng entries as of December 31, 2017, recording any necessary amortization g all balances accurately as of that date Makehhessary entries to record these intangibles. All costs incurred were for cash. and reflecting adjustin $1,500 2017, Paola Corporation reported net sales of $3,500,000 and net income C nstructions E10-14 of (LC 000. Its balance sheet reported average total assets of $1,400,000. ulate the asset turnover l teal substented below are two independent transactions. Both transactions have com. Jo 000 less $22,000 accumulated deprecia-(LO exch mercial substance