Question
Beerboowns 7,000 acres of timberland, which was purchased in 2009 at a cost of $1,400 per acre.At the time of the purchase, the land (without
Beerboowns 7,000 acres of timberland, which was purchased in 2009 at a cost of $1,400 per acre.At the time of the purchase, the land (without the timber) was valued at $400 peracre.Beerboestimatesthat it can harvest 3,500,000 total board feet of timber from the property.Each year,Beerbopays $3,000 to spray the land in order to prevent timber-killing disease.
In 2010,Beerbobuilt fire lanes and roads at a cost of $84,000.Each year,Beerbopays $7,000 to maintain the fire lanes and roads.
During2011,Beerboselectivelylogged 750,000 board feet of timber.
What is thedepletion rateof the timber (in boardf eet)?
Input dollar amounts (round to nearest cent; no $ sign; commas okay)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started