Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sarasota Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,596 per acre. At the time of purchase, the land without
Sarasota Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,596 per acre. At the time of purchase, the land without the timber was valued at $456 per acre. In 2007, Sarasota built fire lanes and roads, with a life of 30 years, at a cost of $95,760. Every year, Sarasota sprays to prevent disease at a cost of$3,420 per year and spends $7,980 to maintain the fire lanes and roads. During 2008 Sarasota selective logged and sold 798 000 toad feet of timber, of the estimated 3,990,000 board feet. In 2009, Sarasota planted new seedlings to replace the trees cut at a cost of $114,000 Determine the depreciation expense and the cost of timber sold related to depletion for 2008. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to O decimal places, e.g. 5,125.) Depreciation expense Cost of timber sold Click if you would like to Show Work for this question: Open Show Work
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started