Question
Swifty Company owns a 7,400-acre tract of timber purchased in 2006 at a cost of $1,443 per acre. At the time of purchase, the
Swifty Company owns a 7,400-acre tract of timber purchased in 2006 at a cost of $1,443 per acre. At the time of purchase, the land was estimated to have a value of $343 per acre without the timber. Swifty Company has not logged this tract since it was purchased. In 2020, Swifty had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,900 board feet of timber. In 2020, Swifty built 10 miles of roads at a cost of $8,140 per mile. After the roads were completed, Swifty logged and sold 3,885 trees containing 890,000 board feet. (a) Determine the cost of timber sold related to depletion for 2020. (Round answer to O decimal places, e.g. 5,125.) Cost of timber sold eTextbook and Media Save for Later Using multiple attempts will impact your score. 5% score reduction after attempt 1 Attempts: 0 of 2 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above.
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