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Splish Brothers Timber Inc., a small private company that follows ASPE, owns 14,850 hectares of timberland purchased in 2007 at a cost of $1,000 per

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Splish Brothers Timber Inc., a small private company that follows ASPE, owns 14,850 hectares of timberland purchased in 2007 at a cost of $1,000 per hectare. At the time of purchase, the land without the timber was valued at $500 per hectare. In 2008, Splish Brothers built fire lanes and roads, with a physical life of 30 years, at a cost of $84,000 and separately capitalized these costs. Every year, Splish Brothers sprays to prevent disease at a cost of $5,000 per year and spends $10,000 to maintain the fire lanes and roads. During 2009, Splish Brothers selectively logged and sold 550,000 cubic metres of the estimated 2.75 million cubic metres of timber. In 2010, Splish Brothers planted new seedlings to replace the cut trees at a cost of $120,000. Determine the depletion charge and the portion of depletion included in the cost of timber sold in 2010. Depletion charge $ Provide the journal entries to record the depletion charged to inventory (and subsequently to cost of goods sold) for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round depletion rate to 2 decimal places, e.g. 15.75 and final answer too decimal places, e.g. 1,525.) Account Titles and Explanation Debit Credit (To record depletion) (To record cost of goods sold) Prepare the necessary journal entry to show how Splish Brothers would account for the maintenance costs of the fire lanes and roads and the spraying of the timberland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit

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