Question
Flint Company owns9,000acres of timberland purchased in 2006 at a cost of $1,652per acre. At the time of purchase, the land without the timber was
Flint Company owns9,000acres of timberland purchased in 2006 at a cost of $1,652per acre. At the time of purchase, the land without the timber was valued at $472per acre. In 2007, Flint built fire lanes and roads, with a life of30years, at a cost of $99,120. Every year, Flint sprays to prevent disease at a cost of $3,540per year and spends $8,260to maintain the fire lanes and roads. During 2008, Flint selectively logged and sold826,000board feet of timber, of the estimated4,130,000board feet. In 2009, Flint planted new seedlings to replace the trees cut at a cost of $118,000.
part 1
Determine the depreciation expense and the cost of timber sold related to depletion for 2008
depreciation cost ______
Cost of timber sold ________
part 2
Flint has not logged since 2008. If Flint logged and sold1,062,000board feet of timber in 2019, when the timber cruise (appraiser) estimated5,900,000board feet, determine the cost of timber sold related to depletion for 2019.
cost of timber sold ______
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