E$10\mathrm{.}19($LO $3)($Depletion Computations$-$Timber$)$ Stanislaw Timber Company owns $9,000$ acres of timberland purchased in $2014$ at a cost of $$1,400$ per acre. At the time of purchase, the land without the timber was valued at $$400$ per acre. In $2015,$ Stanislaw built fire lanes and roads, with a life of $30$ years, at a cost of $$84,000.$ Every year, Stanislaw sprays to prevent disease at a cost of $$3,000$ per year and spends $$7,000$ to maintain the fire lanes and roads. During $2016,$ Stanislaw selectively logged and sold $700,000$ board feet of timber, of the estimated $300,000$ board feet. In $2017,$ Stanislaw planted new seedlings to replace the trees cut at a cost of $$100,000.$

Instructions

a$.$ Determine the depreciation expense and the cost of timber sold related to depletion for $2016.$

b$.$ Stanislaw has not logged since $2016.$ If Stanislaw logged and sold $900,000$ board feet of timber in $2027,$ when the timber cruise $($appraiser$)$ estimated $5,000,000$ board feet, determine the cost of timber sold related to depletion for $2027.$