Sage Company owns a 7,280-acre tract of timber purchased in 2003 at a cost of $1,352 per acre. At the time of purchase, the land was estimated to have a value of $312 per acre without the timber. Sage Company has not logged this tract since it was purchased. In 2017, Sage had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,320 board feet of timber. In 2017, Sage built 10 miles of roads at a cost of $8,154 per mile. After the roads were completed, Sage logged and sold 3,640 trees containing 884,000 board feet.

Determine the cost of timber sold related to depletion for 2017. (Round intermediate calculations to 5 decimal places, e.g. 1.24654 and final answer to 0 decimal places, e.g. 5,125.)

Cost of timber sold $

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If Sage depreciates the logging roads on the basis of timber cut, determine the depreciation expense for 2017. (Round intermediate calculations to 5 decimal places, e.g. 1.24654 and final answer to 0 decimal places, e.g. 5,125.)

Depreciation expense $

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If Sage plants five seedlings at a cost of $4 per seedling for each tree cut, how should Sage treat the reforestation?

Sage should capitalize expense the cost of $ .