Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Connect 2-semester For Auditing & Assurance Services A Systematic Approach

Authors: Author

10th Edition

1259292045, 9781259292040

More Books

Students also viewed these Accounting questions

Question

Define and describe the sections in a job description.

Answered: 1 week ago

Question

Discuss the relationship between job analysis and HRM processes.

Answered: 1 week ago