Oriole Logging and Lumber Company owns 2,770 acres of timberland on the north side of Mount Leno, which was purchased in 2008 at a cost of $560 per acre. In 2020, Oriole began selectively logging this timber tract. In May 2020, Mount Leno erupted, burying the timberland of Oriole under a foot of ash. All of the timber on the Oriole tract was downed. In addition, the logging roads, built at a cost of $145,200, were destroyed, as well as the logging equipment, with a net book value of $327,100. At the time of the eruption, Oriole had logged 20% of the estimated 557,350 board feet of timber. Prior to the eruption, Oriole estimated the land to have a value of $210 per acre after the timber was harvested. Oriole includes the logging roads in the depletion base. Oriole estimates it will take 3 years to salvage the downed timber at a cost of $659,900. 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. Part 1 Part 2 Part 3 X Your answer is incorrect. If this tract represents approximately half of the timber holdings of Oriole, 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 $ 1345760 In 1993, Oriole Company completed the construction of a building at a cost of $2,400,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $72,000 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $600,000. At that time, it was estimated that the remaining life of the building would be as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $24,000. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate. (a) x Your answer is incorrect. Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003. Annual depreciation from 1994 through 2003 $ 48500 /yr. e Textbook and Media List of Accounts Save for Later Attempts: 1 of 3 used Submit Answer (b) Compute the annual depreciation that would have been charged from 2004 through 2022. Annual depreciation from 2004 through 2021 $ / yr. e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (c) Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (if no entry is required, select "No entry"for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (d) Compute the annual depreciation to be charged, beginning with 2022. (Round answer to O decimal places, eg. 45,892.) Annual depreciation expense-building $ Oriole Logging and Lumber Company owns 2,770 acres of timberland on the north side of Mount Leno, which was purchased in 2008 at a cost of $560 per acre. In 2020, Oriole began selectively logging this timber tract. In May 2020, Mount Leno erupted, burying the timberland of Oriole under a foot of ash. All of the timber on the Oriole tract was downed. In addition, the logging roads, built at a cost of $145,200, were destroyed, as well as the logging equipment, with a net book value of $327,100. At the time of the eruption, Oriole had logged 20% of the estimated 557,350 board feet of timber. Prior to the eruption, Oriole estimated the land to have a value of $210 per acre after the timber was harvested. Oriole includes the logging roads in the depletion base. Oriole estimates it will take 3 years to salvage the downed timber at a cost of $659,900. 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. Part 1 Part 2 Part 3 X Your answer is incorrect. If this tract represents approximately half of the timber holdings of Oriole, 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 $ 1345760 In 1993, Oriole Company completed the construction of a building at a cost of $2,400,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $72,000 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $600,000. At that time, it was estimated that the remaining life of the building would be as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $24,000. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate. (a) x Your answer is incorrect. Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003. Annual depreciation from 1994 through 2003 $ 48500 /yr. e Textbook and Media List of Accounts Save for Later Attempts: 1 of 3 used Submit Answer (b) Compute the annual depreciation that would have been charged from 2004 through 2022. Annual depreciation from 2004 through 2021 $ / yr. e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (c) Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (if no entry is required, select "No entry"for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (d) Compute the annual depreciation to be charged, beginning with 2022. (Round answer to O decimal places, eg. 45,892.) Annual depreciation expense-building $