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C-11 2500 acre tract of timber purchased by a paper company with $1,200.000. An acre cost $275 when timber is completely cleared. The paper Board
C-11 2500 acre tract of timber purchased by a paper company with $1,200.000. An acre cost $275 when timber is completely cleared. The paper Board estimates that there will be 5 million board-feet timber available in this tract. Each year, for 5 years, the company can deplete an equal amount. Determine the depletion allowance for each year.
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