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Novak Company owns a 7,600-acre tract of timber purchased in 2006 at a cost of $1,560 per acre. At the time of purchase, the land

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Novak Company owns a 7,600-acre tract of timber purchased in 2006 at a cost of $1,560 per acre. At the time of purchase, the land was estimated to have a value of $360 per acre without the timber. Novak Company has not logged this tract since it was purchased. In 2020, Novak had the timber cruised. The cruise (appraiser) estimated that each acre contained 9,600 board feet of timber. In 2020, Novak built 10 miles of roads at a cost of $8,090 per mile. After the roads were completed, Novak logged and sold 4,200 trees containing 1,020,000 board feet. If Novak plants five seedlings at a cost of $5 per seedling for each tree cut how should Novak treat the reforestation? Novak should the cost of $

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