Metlock Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,495 per acre. At the time of purchase, the land was estimated to have a value of $395 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 9,200 board feet of timber. In 2020, Metlock built 10 miles of roads at a cost of $8,280 per mile. After the roads were completed, Metlock logged and sold 4,025 trees containing 977,500 board feet.

If Metlock depreciates the logging roads on the basis of timber cut, determine the depreciation expense for 2020. (Round answer to 0 decimal places, e.g. 5,125.)

Depreciation expense

$

If Metlock plants five seedlings at a cost of $5 per seedling for each tree cut, how should Matlock treat reforestation?

Metlock should

capitalized/expense

the cost of

$