Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tamarisk Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,624 per acre. At the time of purchase, the land without

Tamarisk Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,624 per acre. At the time of purchase, the land without the timber was valued at $464 per acre. In 2010, Tamarisk built fire lanes and roads, with a life of 30 years, at a cost of $97,440. Every year, Tamarisk sprays to prevent disease at a cost of $3,480 per year and spends $8,120 to maintain the fire lanes and roads. During 2011, Tamarisk selectively logged and sold 812,000 board feet of timber, of the estimated 4,060,000 board feet. In 2012, Tamarisk planted new seedlings to replace the trees cut at a cost of $116,000. Tamarisk has not logged since 2011. If Tamarisk logged and sold 1,044,000 board feet of timber in 2022, when the timber cruise (appraiser) estimated 5,800,000 board feet, determine the cost of timber sold related to depletion for 2022. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to 0 decimal places, e.g. 5,125.) Cost of timber sold $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rigos Primer Series CPA Exam Review Financial Accounting Questions And Answers

Authors: Mr. James J. Rigos

2020 Edition

979-8642293720

More Books

Students also viewed these Accounting questions