60.1K

Verified Solution

Link Copied!

Amortization and Depletion Entries Data related to the acquisition of timber rights and intangible assets of Gemini Company during the current year ended December 31 are as follows: a. On December 31, Gemini Company determined that $3,000,000 of goodwil was impaired. b. Governmental and legal costs of $920,000 were incurred by Gemini Company on June 30 in obtaining a patent with an estimated economic life of eight years. Amortization is to be for one-half year. c. Timber rights on a tract of land were purchased for $1,350,000 on March 6. The stand of timber is estimated at 15,000,000 board feet. During the current year, 3,300,000 board feet of timber were cut and sold. Instructions: 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. Item Amortization, Depletion, or Impairment & 2. Illustrate the effects on the accounts and financial statements of recording the following transactions. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect from the dropdown and leave the corresponding number entry box blank a. On December 31, Gemini Company determined that $3,000,000 of goodwill was impaired Balance Sheet Statement of Cash Assets Liabiwnies Stockholders' Equity Flows Check My Work Previous Next

Answer & Explanation Solved by verified expert

See Answer