Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tamarisk Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,430 per acre. At the time of purchase, the land

image text in transcribed
Tamarisk Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,430 per acre. At the time of purchase, the land was estimated to have a value of $330 per acre without the timber. Tamarisk Company has not logged this tract since it was purchased. In 2020, Tamarisk had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,800 board feet of timber. In 2020, Tamarisk built 10 miles of roads at a cost of $7,920 per mile. After the roads were completed, Tamarisk logged and sold 3,850 trees containing 930,000 board feet. 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 If Tamarisk depreciates the logging roads on the basis of timber cut, determine the depreciation expense for 2020. (Round answer to 0 decimal places, e.g. 5,125.) Depreciation expense 1f Tamarisk plants five seedlings at a cost of $4 per seedling for each tree cut, how should Tamarisk treat the reforestation? Tamarisk should the cost of

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

Auditing A Practical Approach

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton

4th Edition

0730382648, 978-0730382645

Students also viewed these Accounting questions