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Hi I just need help with part C! Thank you! Problem 11-06 (Part Level Submission) Splish Logging and Lumber Company owns 3,190 acres of timberland
Hi I just need help with part C! Thank you!
Problem 11-06 (Part Level Submission) Splish Logging and Lumber Company owns 3,190 acres of timberland on the north side of Mount Leng, which was purchased in 2008 at a cost of $540 per acre. In 2020, Splish began selectively logging this timber tract. In May 2020, Mount Leno erupted burying the timberland of Splish under a fotod ash. All of the timbur on the Splsh tract was downed. In addition, the logging roads, built at a cost of $136,800, were destroyed, as well as the logging equipment, with a netbook value of $300,800 At the time of the eruption, Splish had logged 20% of the estimated 578,800 board feet of timber. Prior to the eruption, Splish estimated the land to have a value of $220 per acre after the timber was harvested. Splish includes the logging roads in the depletion base Splish estimates it will take 3 years to salvage the downed timber at a cost of $656,600. The timber can be sold for pulp wood at an estimated price of $2 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties Your answer is correct Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount Leno. (Round per unit answer to 2 decimal places, e.g. 0.45.) Depletion cost per board foot Click if you would like to show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT (b) Your answer is correct. Prepare the journal entry to record the depletion prior to the eruption. (If no entry is required, select "No entry for the account tiefes and enter for the amounts. Round per unit answer to 2 decimal places, .9. 0.45 for computational purpose and final answers to decimal places, e.g. 45,892. Credit account titles are automatically indented when amount is entered. Do not Indent manually.) Account Titles and Explanation Debit Crede Inventory 231520 Timber 231520 Click if you would like to Show Work for this question: Open Show Werk x Your answer is incorrect. Spain If this tract represents approximately half of the timber holdings of Splish, determine the amount of the unusual loss due to the eruption of Mount Leno for the year ended December 31, 2020. Unusual loss due to the eruption of Mount Leno 1172480Step by Step Solution
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