Depletion of Timber}

Oldman Development has purchased a 5,000-hectare tract of forested land in northern British Columbia. The tract contains about 1,440,000 pine trees that, when mature, can be used for utility poles. Bedford paid \(\$ 900\) per hectare for the timberland. The land will have a residual value of \(\$ 180\) per hectare when all the trees are harvested. During 2018, Oldman harvested 150,000 trees.

\section*{Required:}

1. Compute the depletion per tree.

2. Prepare the journal entry to record the harvesting of the trees for 2018 .

Problem