In 2009, Mr. Brad bought a timberland property with a purchase price of $160,000. He also paid $2,5000 for timberland cruise, $1,500 for boundary survey, and $1,000 for title search and closing cost. The fair market value for the merchantable timber, premarch timber, and land are $90,000, $30,000, and $25,000, respectively. The initial inventory was 3,800 tons. Harvest will be 6% of the inventory, after which growth will be 7% of the inventory. The premarch timber values (trees <= 13 years) by age classes are given below:
Age Premarch $
13 5,500
12 3,600
11 2,700
10 1,800
Calculate the initial depletion rate and the depletion rates for the next 4 years. If Mr. Brad sold year 2010 harvest at price $34/ton and the capital gain rate is 15%, what's the tax due?