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Oriole Paper Products purchased 1 2 , 0 0 0 acres of forested timberland in March 2 0 2 5 . The company paid $
Oriole Paper Products purchased acres of forested timberland in March The company paid $ per acre for this land,
which was above the $ per acre most farmers were paying for cleared land. During April, May, June, and July Oriole cut
enough timber to build roads using moveable equipment purchased on April The cost of the roads was $ and the cost
of the equipment was $; this equipment was expected to have a $ salvage value and would be used for the
next years. Oriole selected the straightline method of depreciation for the moveable equipment. Oriole began actively harvesting
timber in August and by December had harvested and sold board feet of timber of the estimated board feet
available for cutting.
In March Oriole planted new seedlings in the area harvested during the winter. Cost of planting these seedlings was $
In addition, Oriole spent $ in road maintenance and $ for pest spraying during calendaryear The road maintenance
and spraying are annual costs. During Oriole harvested and sold board feet of timber of the estimated board
feet available for cutting.
In March Oriole again planted new seedlings at a cost of $ and also spent $ on road maintenance and pest
spraying. During the company harvested and sold board feet of timber of the estimated board feet available
for cutting.
Compute the amount of depreciation and depletion expense for each of the years and Assume that the roads are
usable only for logging and therefore are included in the depletion base. Round times cost per board foot to decimal places eg and
final answers to decimal places, eg
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