User Account

All Pages

Problem - Amortization and Depletion Entries

Assignment Help Financial Accounting
Reference no: EM132468458

Problem - 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:

a. Timber rights on a tract of land were purchased for $1,620,000 on February 22. 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.

b. On December 31, the company determined that $1,000,000 of goodwill was impaired.

c. Governmental and legal costs of $10,368,000 were incurred on April 3 in obtaining a patent with an estimated economic life of 12 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.

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

Reference no: EM132468458

Questions Cloud

Calculate the amount that prt should include : Calculate the amount that PRT should include in its consolidated statement of financial position as at 31 December 2013
How do you think sales will trend for the spring 20 : Using this information, how do you think sales will trend for the Spring '20? Use your research to substantiate your opinion.
Determine the total sales and total cost of merchandise sold : Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. Determine the ending inventory cost on June 30.
Case-the farm bank : The Farm Bank is one of the state's oldest and most solid banking institutions. Located in a regional marketing center, the bank has been active
Problem - Amortization and Depletion Entries : Problem - Amortization and Depletion Entries. Journalize the adjusting entries required to record the amortization, depletion, or impairment for each item
Depth and breadth of product lines : How would you array the following organizations in terms of the depth and breadth of their product lines:
Explain the evolution in market growth of a neighborhood : Use the wheel of retailing concept to explain the evolution in market growth of a neighborhood urgent care medical center that treats minor emergencies.
Journalize the transactions and the adjusting entries : Problem - Transactions for Fixed Assets, Including Sale. Journalize the transactions and the adjusting entries. If an amount box does not require an entry
Publix social media outlets : Should all Publix's social media outlets have a consistent message or should they adapt entirely to the outlet?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is break-even lease payment amount-annual depreciation

Maxine's is considering either purchasing or leasing a $600,000 piece of specialized equipment. The equipment has a life of 5 years, belongs in a 30% CCA class, and will have no residual value. The cost of debt is 12% for this purchase. What is Maxin..

  What is the project net present value

If taxes are ignored and the required rate of return is 9%, what is the project's net present value? Based on this analysis, should the company proceed with the project?

  What is the present value of the total severance package

Global Stores is downsizing and must let some employees go. Employees volunteering to leave are being offered a severance package of $126,000 cash, another $137,000 to be paid in one year, and an annuity of $35,500 to be paid each year for seven year..

  What is the after tax cost of debt

If the bonds have 30 years to maturity and are selling at 101% of par, what is the after tax cost of debt? Assume a tax rate of 30%.

  Q in 2000 san fernando shipped 300 diamond drill bits to

q in 2000 san fernando shipped 300 diamond drill bits to its subsidiary in ecuador. the drill bits were shipped at san

  What is the market value of the firm prior to the recap

What is the market value of the firm prior to the recap? What is the market value of equity?

  What amount of revenue should acme recognize

the remaining 25% due on second delivery. What amount of revenue should Acme recognize from this sale during year 1

  Record the sale of net assets on the books of crow company

Record the acquisition of the net assets of Crow Company on Bart Company's books. Record the sale of the net assets on the books of Crow Company.

  What is effect of a stock dividend on book per share

What is the effect of a stock dividend or a stock split on book value per share? Why do many companies like to give stock options as compensation?

  When revenues and expenses are recognized on the cash method

You have a contract for $200,000. The following events occur: March 1 – the project starts March 20 – The subcontractors bill for $80,000 to the contractor Between March 1 and March 31 – 45% of the contract was completed April 10. Determine when reve..

  Auditors develop overal audit plans to ensure

Auditors develop overal audit plans to ensure that they obtain sufficient appropriate eveidence. The timing and extent of audit procedures auditors use is a matter of professional judgement, which depends upon a number of factors. Identify the year-e..

  Calculate the net capital gain

Calculate the net capital gain that Anthony will need to include in his income tax return assuming he undertakes all proposed sales.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd