Question
Bramble Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,596 per acre. At the time of purchase, the land without
Bramble Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,596 per acre. At the time of purchase, the land without the timber was valued at $456 per acre. In 2010, Bramble built fire lanes and roads, with a life of 30 years, at a cost of $95,760. Every year, Bramble sprays to prevent disease at a cost of $3,420 per year and spends $7,980 to maintain the fire lanes and roads. During 2011, Bramble selectively logged and sold 798,000 board feet of timber, of the estimated 3,990,000 board feet. In 2012, Bramble planted new seedlings to replace the trees cut at a cost of $114,000.
Determine the depreciation expense and the cost of timber sold related to depletion for 2011. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to 0 decimal places, e.g. 5,125.)
Depreciation expense | $ | |
Cost of timber sold | $ |
Bramble has not logged since 2011. If Bramble logged and sold 1,026,000 board feet of timber in 2019, when the timber cruise (appraiser) estimated 5,700,000 board feet, determine the cost of timber sold related to depletion for 2022. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to 0 decimal places, e.g. 5,125.)
Cost of timber sold | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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