$($Natural Resources$$Timber$)$ Easton Paper Mills purchased $15,000$ acres of timberland

in April $2025.$ The company paid $$2,400$ per acre for this land, which was above the $$600$ per

acre most farmers were paying for cleared land. During April, May, and June $2025,$ Easton cut enough

timber to build roads using moveable equipment purchased on April $1,2025.$ The cost of the roads was

$$320,000,$ and the cost of the equipment was $$400,000$; this equipment was expected to have a $$40,000$

salvage value and would be used for the next $12$ years. Easton selected the straight$-$line method of depreciation

for the moveable equipment. Easton began actively harvesting timber in July and by December

had harvested and sold $350,000$ board feet of timber of the estimated $7,000,000$ board feet available for

cutting.

In March $2026,$ Easton planted new seedlings in the area harvested during the winter. Cost of planting

these seedlings was $$90,000.$ In addition, Easton spent $$12,000$ in road maintenance and $$8,000$ for

pest spraying during calendar$-$year $2026.$ The road maintenance and spraying are annual costs. During

$2026,$ Easton harvested and sold $704,000$ board feet of timber of the estimated $6,400,000$ board feet

available for cutting.

In March $2027,$ Easton again planted new seedlings at a cost of $$120,000,$ and also spent $$22,000$

on road maintenance and pest spraying. During $2027,$ the company harvested and sold $720,000$ board

feet of timber of the estimated $6,000,000$ board feet available for cutting.

Instructions

Compute the amount of depreciation and depletion expense for each of the $3$ years $(2025,2026,2027).$

Assume that the roads are usable only for logging and therefore are included in the depletion base.