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(Depletion, Timber) Glider Pacific Timber Company owns 10,000 acres of timberland in eastern Washington, which was purchased in 2008 at a cost of $780 per acre. In 2017, Glider Pacific began selectively logging this timber tract. In July of 2017, a nearby (thought to be dormant) volcano erupted, downing all of the trees and burying the timberland of Glider Pacific under a foot of ash. In addition, the logging roads, built at a cost of $190,000, and all of the logging equipment, with a net book value of $420,000, were destroyed. At the time of the eruption, Glider Pacific had logged 10% of the estimated 1,600,000 board feet of timber. Prior to the druption, Glider Pacific estimated the land to have a value of $175 per acre after the timber was harvested. Glider Pacific includes the logging roads in the depletion base. Glider Pacific estimates it will take 5 years to salvage the downed timber at a cost of $1,100,000. The timber can be sold for pulp wood at an estimated price of $2.40 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties. Instructions (a) Determine the depletion cost per board foot for the timber harvested prior to the volcano eruption. (b) Prepare the journal entry to record the depletion prior to the eruption. (c) If this tract represents approximately half of the timber holdings of Glider Pacific, determine the amount of the loss due to the eruption for the year ended December 31, 2017