PROBLEM THREE (30 POINTS) Your company has purchased 880 acres of timberland in Cleveland County, Arkansas for $1,325,000. This cost includes the purchase price of the land, legal and surveying fees, timber cruising, and an environmental assessment regarding wetlands and endangered species presence. On this land is 12,870 tons of merchantable hardwood pulpwood and 13,900 tons of merchantable mixed hardwood sawtimber and 10,210 tons of merchantable oak sawtimber. From similar sales of cutover land in southeast Arkansas, the average value of bare land is $800 per acre. There are no improvements or other items of value on the property Current Timber Mart South fair market prices are . S10/ton for hardwood pulp $30/ton for mixed hardwood sawtimber $50/ton for oak sawtimber From this data, fill out the following table and determine the basis for land and timber accounts. Total Purchase Price Fair Market Proportion of Original Cost Value FMV Basis Land Timber Totals PROBLEM FOUR (20 POINTS) Based on your cost basis for timber as determined in problem three, if, I the land, you sawtimber, and 2042 tons of oak sawtimber for a total of $250,708, what "'cost you deduct from this revenue? What would be your estimated taxable income? 13 months after buying immediately sold 2574 tons of hardwood pulp, 2780 tons of mixed hardwood of timber could