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Sage Company owns a 7,200-acre tract of timber purchased in 2006 at a cost of $1,612 per acre. At the time of purchase, the land
Sage Company owns a 7,200-acre tract of timber purchased in 2006 at a cost of $1,612 per acre. At the time of purchase, the land was estimated to have a value of $372 per acre without the timber. Sage Company has not logged this tract since it was purchased. In 2020, Sage had the timber cruised. The cruise (appraiser) estimated that each acre contained 9,920 board feet of timber. In 2020, Sage built 10 miles of roads at a cost of $7,610 per mile. After the roads were completed, Sage logged and sold 4,340 trees containing 1,054,000 board feet. (a) - Your answer is incorrect. Determine the cost of timber sold related to depletion for 2020. (Round answer to O decimal places, e.g. 5,125.) Cost of timber sold ta 1
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