Prepare the journal entries for LumberCo. A lumberjack company, under the following economic events: A track of land was purchased on July 1,2001 for $1,500,000. The land has 100,000,000lbs of lumber worth $1,200,000. A saw was purchased in 2010 to assist with the harvesting of the lumber for $25,000 with a 12 year life expectancy. The land produced the following amounts of lumber 2,000,000 lbs in its first year, 8,000,000, in the second year, and 10,000,000 lbs for each of the eight years following. On July 1, 2011 the land was sold for $175,000. On July 1, 2011 the saw was sold for $17,000. Record journal entries for the transactions above. Use units of activity method of depreciation for the land, and straight-line method of depreciation for the vehicle. Action Plan : Use units of activity method for the natural resources. Use straight line balance for the vehicle. Record the purchase of the items . Calculate depreciation on the two items. Calculate the gain or loss on disposal