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Bolton Co. acquired a tract of timber for $400,000. At the time of purchase, the land was estimated to have a value of $40,000 without
Bolton Co. acquired a tract of timber for $400,000. At the time of purchase, the land was estimated to have a value of $40,000 without the timber. The appraiser estimated that the tract contained 1,000,000 board feet of timber. During 2020, 270,000 board feet of timber were logged and sold. The amount of depletion expense of timber for 2020 under the units-of-production is: $60,000 $97,200 $54,000 $108,000
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