DEPLETION OF TIMBER Bedford Ridge Development purchased a 5,000-acre tract of forested land in southern Georgia. The tract contained about 1,500,000 pine trees that, when mature, can be used for utility poles. Bedford paid $900 per acre for the timberland. The land has a residual value of $180 per acre when all the trees are harvested. During 2009, Bedford harvested 150,000 trees.

Required:

. Compute the depletion per tree.

. Prepare the journal entry to record the harvesting of the trees for 2009.

Exercise