Exercise 9-31 Amortization of intangible assets LO2, 3, 7 On September 5, 2023, Nelson Lumber...
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Exercise 9-31 Amortization of intangible assets LO2, 3, 7 On September 5, 2023, Nelson Lumber purchased tmber rights in Northern Quebec for $558,000, paying $110,000 cash and the balance by issuing a non-current note. Logging the area is expected to take three years, and the timber rights with have no value after that time On September 27, 2023, Nelson Lumber purchased a patent for $162000 for new logging equipment on account it is expected that the patent will be technologically obsolete in 15 years. Nelson's year-end is December 31 and it uses the straight-line method to the nearest month to amortize intangibles Required: 1. Record the arquisition of the timber rights and the patent 2. Record amortization on the timber rights and the patent at December 31, 2023, and December 31, 2024. Journal entry worksheet
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