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Pronghorn Company owns a 7,700-acre tract of timber purchased in 2006 at a cost of $1,404 per acre. At the time of purchase, the
Pronghorn Company owns a 7,700-acre tract of timber purchased in 2006 at a cost of $1,404 per acre. At the time of purchase, the land was estimated to have a value of $324 per acre without the timber. Pronghorn Company has not logged this tract since it was purchased. In 2020, Pronghorn had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,640 board feet of timber. In 2020, Pronghorn built 10 miles of roads at a cost of $7.940 per mile. After the roads were completed, Pronghorn logged and sold 3,780 trees containing 920,000 board feet. (a) Determine the cost of timber sold related to depletion for 2020. (Round answer to 0 decimal places, e.g. 5,125.) Cost of timber sold $
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