157. In 2011, Albert Mining Co. purchased a coal mine that contained an estimated 1,000,000 tons of coal for a cash price of $8,500,000. The company mined 350,000 tons of coal in 2011.
Required: a) What is the amount of depletion to be recorded per ton of coal?
b) What is the amount of depletion expense for 2011?
158. In 2011, Harold Corporation Co. acquired a patent from a competitor for $75,000. At the time of purchase, it had 12 years of its legal life remaining; however, due to competition, Harold believes that the patent will only be useful for 8 years. Prepare the general journal entry to recognize amortization expense for 2011.
159. On January 1, 2011, Hailey Company purchased Briar Company, paying $600,000 cash. The fair value of Briar's assets was $550,000, and it had liabilities of $50,000.
Required: a) Prepare Hailey's journal entry to record the acquisition of Briar Company.
b) At the end of 2012, Hailey concluded that the value of its goodwill (associated with the acquisition of Briar) had declined by $60,000. Prepare the journal entry to record this decrease in value.