Crane Paper Products purchased10,100acres of forested timberland in March 2020. The company paid $1,717per acre for this land, which was above the $808per acre most farmers were paying for cleared land. During April, May, June, and July 2020, Crane cut enough timber to build roads using moveable equipment purchased on April 1, 2020. The cost of the roads was $250,350, and the cost of the equipment was $227,250; this equipment was expected to have a $9,090salvage value and would be used for the next15years. Crane selected the straight-line method of depreciation for the moveable equipment. Crane began actively harvesting timber in August and by December had harvested and sold545,400board feet of timber of the estimated6,817,500board feet available for cutting.

In March 2021, Crane planted new seedlings in the area harvested during the winter. Cost of planting these seedlings was $121,000. In addition, Crane spent $8,080in road maintenance and $6,060for pest spraying during calendar-year 2021. The road maintenance and spraying are annual costs. During 2021, Crane harvested and sold781,740board feet of timber of the estimated6,514,500board feet available for cutting.

In March 2022, Crane again planted new seedlings at a cost of $151,500, and also spent $15,150on road maintenance and pest spraying. During 2022, the company harvested and sold656,500board feet of timber of the estimated6,565,000board feet available for cutting.

Compute the amount of depreciation and depletion expense for each of the3years (2020, 2021, and 2022). Assume that the roads are usable only for logging and therefore are included in the depletion base.

Depletion Expense for 2020, 2021, 2022

Depreciation Expense for 2020, 2021, 2022