Tree Lovers Inc. purchased 100 acres of woodland in which the company intends to harvest the complete forest, leaving the land barren and worthless. Tree Lovers paid $2,000,000 for the land. Tree Lovers will sell the lumber as it is harvested and expects to deplete it over five years (22 acres in year one, 30 acres in year two, 25 acres in year three, 12 acres in year four, and 11 acres in year five). Calculate the depletion expense for the next five years. Year 1 440,000 Year 2 $ 600,000 Year 3 500,000 Year 4 240,000 Year 5 220,000 Feedback Check My Work Calculate the depletion cost per unit. This is determined by dividing the total units expected for the resource into the total value determined at the time of acquisition. This per unit cost is then applied to the actual extraction activity for each year. Prepare the journal entry for year one. If an amount box does not require an entry, leave it blank. Depletion Expense Accumulated Depletion 88 Fombell, Incorporated has the following assets in its trial balance: Cash $10,000 Equipment 57,000 Accounts Receivable 4,000 Copyright 5,000 Inventory 15,000 Patent Building What is the total balance of its Property, Plant, and Equipment? 10,000 140,000 tA