Reference no: EM132489395

Question 1: Alpha Mining Company recognizes $2 of depletion for each ton of ore mined. During 2016, 850,000 tons of ore were mined and 725,000 tons were sold. Using this information, how much should be recorded for FY 2016 for the following accounts:

1. Accumulated Depletion
2. Inventory
3. Cost of Goods Sold

Question 2: On January 2, 2016, Alpha Company purchased a patent for $38,500 plus $2,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Alpha Company expects to use the patent for six years. Use this information to prepare the General Journal entry (without explanation) for December 31, 2016 end of the year adjusting entry. If no entry is required then write "No Entry Required."

Alpha Company was recently sold for $1,250,000. Alpha assets & liabilities consisted of the following:

Item                                                            Amount

Cash                                               $75,000

Inventory                                         $275,000

Property, Plant & Equipment (net)         $750,000

Accounts Payable                             $350,000

Using this information, how much should be recorded as Goodwill for this transaction?