Determine the cost of timber sold related to depletion


Stanislaw Timber Company owns 9,000 acres of timberland purchased in 2003 at a cost of $1,890 per acre. At the time of purchase, the land without the timber was valued at $540 per acre. In 2004, Stanislaw built fire lanes and roads, with a life of 30 years, at a cost of $113,400. Every year, Stanislaw sprays to prevent disease at a cost of $4,050 per year and spends $9,450 to maintain the fire lanes and roads. During 2005, Stanislaw selectively logged and sold 945,000 board feet of timber, of the estimated 4,725,000 board feet. In 2006, Stanislaw planted new seedlings to replace the trees cut at a cost of $135,000. Stanislaw has not logged since 2005. If Stanislaw logged and sold 1,215,000 board feet of timber in 2016, when the timber cruise (appraiser) estimated 6,750,000 board feet, determine the cost of timber sold related to depletion for 2016.

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Accounting Basics: Determine the cost of timber sold related to depletion
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