Davis, inc. purchased timberlands in 2022 for $2,500,000. Davis estimated the total amount of lumber that could be logged was 500,000 board feet. Once the land is fully logged, its resale value is estimated to be $250,000. During 2022,125,000 board feet were logged and in 2023, Davis reduced its estimate of the total lumber that could be logged from 500,000 to 400,000 board feet. 1. Assuming Davis uses the units of production method for depletion, compute the book value of the timberlands as of December 31, 2022. 2. The amount of depletion recorded in 2023 is