Final answer:
To amortize the patent for the current year, you would need to make an adjusting entry. The value of the patent is $820,000 and it has a useful life of 6 years. The adjusting entry to amortize the patent for the current year would be a debit to Amortization Expense - Patent and a credit to Accumulated Amortization - Patent. For the mineral rights, the depletion for the current year would be calculated based on the cost of the mineral rights and the tons of ore removed.
Step-by-step explanation:
To amortize the patent for the current year, you would need to make an adjusting entry. The value of the patent is $820,000 and it has a useful life of 6 years. Since the patent was acquired at the beginning of the current year and expires in 15 years, the amortization for the current year would be calculated as follows:
(Value of the patent / Useful life of the patent) * Number of years expired = Amortization for the current year
($820,000 / 15) * 1 = $54,666.67
The adjusting entry to amortize the patent for the current year would be:
- Debit Amortization Expense - Patent: $54,666.67
- Credit Accumulated Amortization - Patent: $54,666.67
For the mineral rights, the depletion for the current year would be calculated as follows:
(Cost of the mineral rights / Estimated tons of ore) * Tons of ore removed = Depletion for the current year
($5,600,000 / 8,000,000) * 350,000 = $245,000
The adjusting entry to record depletion for the current year would be:
- Debit Depletion Expense: $245,000
- Credit Accumulated Depletion: $245,000