Question
Vaughn Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,610 per acre. At the time of purchase, the land without
Vaughn Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,610 per acre. At the time of purchase, the land without the timber was valued at $460 per acre. In 2010, Vaughn built fire lanes and roads, with a life of 30 years, at a cost of $96,600. Every year, Vaughn sprays to prevent disease at a cost of $3,450 per year and spends $8,050 to maintain the fire lanes and roads. During 2011, Vaughn selectively logged and sold 805,000 board feet of timber, of the estimated 4,025,000 board feet. In 2012, Vaughn planted new seedlings to replace the trees cut at a cost of $115,000.Vaughn has not logged since 2011. If Vaughn logged and sold 1,035,000 board feet of timber in 2022, when the timber cruise (appraiser) estimated 5,750,000 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started