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Sheridan Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,498 per acre. At the time of purchase, the land
Sheridan Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,498 per acre. At the time of purchase, the land without the timber was valued at $428 per acre. In 2010, Sheridan built fire lanes and roads, with a life of 30 years, at a cost of $89,880. Every year, Sheridan sprays to prevent disease at a cost of $3,210 per year and spends $7,490 to maintain the fire lanes and roads. During 2011, Sheridan selectively logged and sold 749,000 board feet of timber, of the estimated 3,745,000 board feet. In 2012, Sheridan planted new seedlings to replace the trees cut at a cost of $107,000. (a) Your answer is correct. Determine the depreciation expense and the cost of timber sold related to depletion for 2011. (Round the final answers to O decimal places, e.g. 5,125.) Depreciation expense 2996 Cost of timber sold 1926000
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