Answer Happy

For each of the following unrelated transactions, (1) Timber rights were purchased on a tract of land for $480,000. The timber is estimated at 1,200,000 board feet. During the current year, 75,000 board feet of timber were cut and sold. Costs of $8.000 were incurred on January 1 to obtain a patent. Shortly thereafter, $22,000 was spent in legal costs to successfully defend the patent against competitors. The patent has an estimated legal life of 12 years. (2) (a) Determine the amount of the amortization expense or depletion for the current year (1) Amount of depletion for the current year $ (2) Amount of depletion for the current year $
(b) Present the adjusting entries required to record each expense at year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit (1) (2) ) List of Accounts Save for Liter Attempts: 0 of 1 used Submit Answer