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Exercise 11-16 Depreciation and depletion [LO11-2, 11-3] At the beginning of 2018 Terra Lumber Company purchased a timber tract from Boise Cantor for $4.000.000 After
Exercise 11-16 Depreciation and depletion [LO11-2, 11-3] At the beginning of 2018 Terra Lumber Company purchased a timber tract from Boise Cantor for $4.000.000 After the timber is cleared, the land will have a residual value of $750,000 Roads to enable logging operations were constructed and completed on March 30, 2018. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $312.000 During 2018. Tetralogged 650000 of the estimated 6.5 million board feet of timber Required: Calculate the 2018 depletion of the timber tract and depreciation of the logging roads assuming the units of production method is used for both assets. (Do not round intermediate calculations Depletion of the timber tract Depreciation of the sogging roads
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