Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 11-21 Metlock Company owns a 7,400-acre tract of timber purchased in 2006 at a cost of $1,625 per acre. At the time of purchase,
Exercise 11-21 Metlock Company owns a 7,400-acre tract of timber purchased in 2006 at a cost of $1,625 per acre. At the time of purchase, the land was estimated to have a value of $325 per acre without the timber. Metlock Company has not logged this tract since it was purchased. In 2020, Metlock had the timber cruised. The cruise (appraiser) estimated that each acre contained 10,000 board feet of timber. In 2020, Metlock built 10 miles of roads at a cost of $8,490 per mile. After the roads were completed, Metlock logged and sold 4,375 trees containing 1,062,500 board feet. Determine the cost of timber sold related to depletion for 2020. (Round intermediate calculations to 5 decimal places, e.g. 1.24654 and final answer to 0 decimal places, e.g. 5,125.) Cost of timber sold LINK TO TEXT If Metlock depreciates the logging roads on the basis of timber cut, determine the depreciation expense for 2020. (Round intermediate calculations to 5 decimal places, e.g. 1.24654 and final answer to 0 decimal places, e.g. 5,125.) Depreciation expenses LINK TO TEXT If Metlock plants five seedlings at a cost of $5 per seedling for each tree cut, how should Metlock treat the reforestation? Metlock should the cost of
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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