5. 3Play, Inc. purchases a patent with a remaining legal life of ten years at a cost of $120,000.
Calculate the annual amortization expense on the patent and prepare the journal entry to
record the amortization expense in the year of acquisition:
6. 3Play, Inc. purchases an oil lease from 4Hair, Inc. for $500,000. It is estimated that there are
100,000 barrels of oil which can be extracted from the leased property and sold.
Calculate the depletion expense per barrel of oil, then prepare the journal entry to record the
first year's depletion assuming that 3Play extracted and sold 22,000 barrels of oil.
