Problem
Sweet Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,554 per acre. At the time of purchase, the land without the timber was valued at $444 per acre. In 2007, Sweet built fire lanes and roads, with a life of 30 years, at a cost of $93,240. Every year, Sweet sprays to prevent disease at a cost of $3,330 per year and spends $7,770 to maintain the fire lanes and roads. During 2008, Sweet selectively logged and sold 777,000 board feet of timber, of the estimated 3,885,000 board feet. In 2009, Sweet planted new seedlings to replace the trees cut at a cost of $111,000.
Determine the depreciation expense and the cost of timber sold related to depletion for 2008.
Sweet has not logged since 2008. If Sweet logged and sold 999,000 board feet of timber in 2019, when the timber cruise (appraiser) estimated 5,550,000 board feet, determine the cost of timber sold related to depletion for 2019.