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show work Martinez Company owns a 7,500-acre tract of timber purchased in 2011 at a cost of $1,339 per acre. At the time of purchase,
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Martinez Company owns a 7,500-acre tract of timber purchased in 2011 at a cost of $1,339 per acre. At the time of purchase, the land was estimated to have a value of $339 per acre without the timber. Martinez Company has not logged this tract since it was purchased. In 2025, Martinez had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,240 board feet of timber. In 2025, Martinez built 10 miles of roads at a cost of $7,800 per mile. After the roads were completed, Martinez logged and sold 3,605 trees containing 875,500 board feet. (a) Determine the cost of timber sold related to depletion for 2025. (Do not round intermediate calculations. Round final answer to 0 decimal places, eg. 5, 125.) Cost of timber sold Step by Step Solution
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