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AFM is consedering betwen puroensing on socker Mature forested pikel or land and on 140 acre pareel or lund bhat wos recentir clearcut. the 80

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AFM is consedering betwen puroensing on socker Mature forested pikel or land and on 140 acre pareel or lund bhat wos recentir clearcut. the 80 aves, cost 120,000 \& the 140 ace cost 150,000 . but the 80 has 70cds/acl Hardwood pulf and 8 MGFPer acre of hurdwoal sawlimber. if we purchese be soacro or forested land it is due for a haivese witwin the next 3 yeurs and twat manwgment plan calls for 4 cislac and 4.5 meFlal harvesiced We will assume the 80 aves wose have a land volue that is. 35% the lotal coot if purchused. the timber value at time of purches is 8% pere merchantioel timber 20% pulp and 65% suwtrmier. The Expeuled stumpuge price within the next 3 yeurs is \$65 cord for Harawoad pulp and $425/MBF for suwtamien The income tax rate coulla be 25% for the Shore term cupital gains tux rate would be 20% and the long term capilal gains tax rate would be 15% How much in tares would we be expected to pur on dist the suwtimber portion of this harvest 3 yours from now? Why or why nol is this a beeer deal than buying the 140 acres of clear cut land? B66 per cord pult 4425/MBF AFM is consedering betwen puroensing on socker Mature forested pikel or land and on 140 acre pareel or lund bhat wos recentir clearcut. the 80 aves, cost 120,000 \& the 140 ace cost 150,000 . but the 80 has 70cds/acl Hardwood pulf and 8 MGFPer acre of hurdwoal sawlimber. if we purchese be soacro or forested land it is due for a haivese witwin the next 3 yeurs and twat manwgment plan calls for 4 cislac and 4.5 meFlal harvesiced We will assume the 80 aves wose have a land volue that is. 35% the lotal coot if purchused. the timber value at time of purches is 8% pere merchantioel timber 20% pulp and 65% suwtrmier. The Expeuled stumpuge price within the next 3 yeurs is \$65 cord for Harawoad pulp and $425/MBF for suwtamien The income tax rate coulla be 25% for the Shore term cupital gains tux rate would be 20% and the long term capilal gains tax rate would be 15% How much in tares would we be expected to pur on dist the suwtimber portion of this harvest 3 yours from now? Why or why nol is this a beeer deal than buying the 140 acres of clear cut land? B66 per cord pult 4425/MBF

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