Whispering Logging and Lumber Company owns 2,780 acres of timberland on the north side of Mount Leno, which was purchased in 2008 at a cost of $590 per acre. In 2020, Whispering began selectively logging this timber tract. In May 2020, Mount Leno erupted, burying the timberland of Whispering under a foot of ash. All of the timber on the Whispering tract was downed. In addition, the logging roads, built at a cost of $144,000, were destroyed, as well as the logging equipment, with a net book value of $278,900. At the time of the eruption, Whispering had logged 20% of the estimated 458,500 board feet of timber. Prior to the eruption, Whispering estimated the land to have a value of $180 per acre after the timber was harvested. Whispering includes the logging roads in the depletion base. Whispering estimates it will take 3 years to salvage the downed timber at a cost of $763,500. The timber can be sold for pulp wood at an estimated price of $3 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties.

(a)

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Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount Leno. (Round per unit answer to 2 decimal places, e.g. 0.45.)

Depletion cost per board foot

2.8

$

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(b)

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Prepare the journal entry to record the depletion prior to the eruption. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round per unit answer to 2 decimal places, e.g. 0.45 for computational purpose and final answers to 0 decimal places, e.g. 45,892. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

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(c)