Maroon Logging and Lumber Company owns 3,000 acres of timberland on the north side of Mount Volcano, which was purchased in 19X8 (15 years ago) at a cost of $500 per acre. In 20X3, Maroon began selectively logging this timber tract. In May of 20X3, Mount Volcano erupted, burying the timberland of Maroon under a foot of ash. All of the timber on the Maroon tract was downed. In addition, the logging roads, built at a cost of $150,000, were destroyed, as well as the logging equipment, with a net book value of S300,000. At the time of the eruption, Maroon had logged 20% of the estimated 500,000 board feet of timber. Prior to the eruption, Maroon estimated the land to have a value of $200 per acre after the timber was harvested. Maroon includes the logging roads in the depletion base but not the machinery since it can be used at other logging sites. Maroon estimates that it will take 3 years to salvage the downed timber at a cost of $700,000. The timber can be sold for pulp wood at an estimated price of $3 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties. REQUIRED: (1) (2) (3) Compute the depletion cost per board foot for the timber harvested prior to the eruption of Mount Volcano. Prepare the journal entry to record the depletion prior to the eruption. Omit explanations If this tract represents approximately half of the timber holdings of Maroon, determine the amount of the estimated loss and show how the losses of roads, machinery, and timber and the salvage of the timber should be reported in the financial statements of Maroon for the year ended December 31, 20X3