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Swifty Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,708 per acre. At the time of purchase, the land without
Swifty Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,708 per acre. At the time of purchase, the land without the timber was valued at $488 per acre. In 2007, Swifty built fire lanes and roads, with a life of 30 years, at a cost of $102,480. Every year, Switfty sprays to prevent disease at a cost of $3,660 per year and spends $8,540 to maintain the fire lanes and roads. During 2008, Swifty selectively logged and sold 854,000 board feet of timber, of the estimated 4,270,000 board feet. In 2009 Swifty planted new seedlings to replace the trees cut at a cost of $122,000. Part 1 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 0 decimal places, e.g. 5,125.) Depreciation expense $ $ Cost of timber sold
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