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Year 2017 | ||||
Computation of Depletion Base for 2017 | ||||
Timber cost per acre | $ 2,091 | |||
Less: Land cost | $ -984 | |||
Timber Cost | $ 1,107 | |||
Total Acre | 12,300 | |||
Total Timber Cost | $ 13,616,100 | |||
Add: Road Cost | $ 307,500 | |||
Total Depletion Base | a | $ 13,923,600 | ||
Estimated Board Feet | b | 8,302,500 | ||
Actual Board Feet Harvested | c | 664,200 | ||
Ratio | c/b=d | 0.08 | ||
Depletion Expense for Year 2017 | a*d | $ 1,113,888 | ||
Depreciation of movable Equipment | ||||
Cost | $ 276,750 | |||
Less: Salvage Value | $ -11,070 | |||
$ 265,680 | ||||
Life | 15 | Years | ||
Annual Depreciation | $ 17,712 | |||
Depreciation Expense for Year 2017 | $17,712*9/12 | $ 13,284 | ||
Year 2018 | ||||
Computation of Depletion Base for 2018 | ||||
Base for 2017 | $ 13,923,600 | |||
Less: Depletion for Year 2017 | $ -1,113,888 | |||
Add: Seedling Planting Cost | $ 147,600 | |||
Depletion base for Year 2018 | $ 12,957,312 | |||
Estimated Board Feet | b | 7,933,500 | ||
Actual Board Feet Harvested | c | 952,020 | ||
Ratio | c/b=d | 0.12 | ||
Depletion Expense for Year 2018 | a*d | $ 1,554,877 | ||
Depreciation Expense for Year 2018 | $ 17,712 | |||
Year 2019 | ||||
Computation of Depletion Base for 2019 | ||||
Base for 2018 | $ 12,957,312 | |||
Less: Depletion for Year 2018 | $ -1,554,877 | |||
Add: Seedling Planting Cost | $ 184,500 | |||
Depletion base for Year 2019 | $ 11,586,935 | |||
Estimated Board Feet | b | 7,995,000 | ||
Actual Board Feet Harvested | c | 799,500 | ||
Ratio | c/b=d | 0.10 | ||
Depletion Expense for Year 2019 | a*d | $ 1,158,693 | ||
Depreciation Expense for Year 2019 | $ 17,712 |
Problem 11-7 Your answer is partially correct. Try again. Kingbird Paper Products purchased 12,300 acres of forested timberland in March 2017. The company paid $2,091 per acre for this land which as...
Kingbird Paper Products purchased 11,000 acres of forested timberland in March 2017. The company paid $1,870 per acre for this land, which was above the $880 per acre most farmers were paying for cleared land. During April, May, June, and July 2017, Kingbird cut enough timber to build roads using moveable equipment purchased on April 1, 2017. The cost of the roads was $275,000, and the cost of the equipment was $247,500; this equipment was expected to have a $9,900...
Marin Paper Products purchased 11,600 acres of forested timberland in March 2017. The company paid $1,972 per acre for this land, which was above the $928 per acre most farmers were paying for cleared land. During April, May, June, and July 2017, Marin cut enough timber to build roads using moveable equipment purchased on April 1, 2017. The cost of the roads was $290,000, and the cost of the equipment was $261,000; this equipment was expected to have a $10,440...
Bronson Paper Products purchased 17,500 acres of forested timberland in March 2014. The company paid $2,975 per acre for this land, which was above the $1,400 per acre most farmers were paying for cleared land. During April, May, June, and July 2014, Bronson cut enough timber to build roads using moveable equipment purchased on April 1, 2014. The cost of the roads was $437,500, and the cost of the equipment was $393,750; this equipment was expected to have a $15,750...
Problem 11-07 Vaughn Paper Products purchased 11,500 acres of forested timberland in March 2020. The company paid $1,955 per acre for this land, which was above the $920 per acre most farmers were paying for cleared land. During April, May, June, and July 2020, Vaughn cut enough timber to build roads using moveable equipment purchased on April 1, 2020. The cost of the roads was $287,500, and the cost of the equipment was $258,750; this equipment was expected to have...
A Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,722 per acre. At the time of purchase, the land without the timber was valued at $492 per acre. In 2007, They built fire lanes and roads, with a life of 30 years, at a cost of $103,320. Every year, they sprays to prevent disease at a cost of $3,690 per year and spends $8,610 to maintain the fire lanes and roads. During 2008, the company...
Bonita Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,526 per acre. At the time of purchase, the land without the timber was valued at $436 per acre. In 2010, Bonita built fire lanes and roads, with a life of 30 years, at a cost of $91,560. Every year, Bonitasprays to prevent disease at a cost of $3,270 per year and spends $7,630 to maintain the fire lanes and roads. During 2011, Bonita selectively logged...
Marigold Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,456 per acre. At the time of purchase, the land without the timber was valued at $416 per acre. In 2010, Marigold built fire lanes and roads, with a life of 30 years, at a cost of $87,360. Every year, Marigold sprays to prevent disease at a cost of $3,120 per year and spends $7,280 to maintain the fire lanes and roads. During 2011, Marigold selectively logged and sold 728,000 board feet of timber, of the estimated 3,640,000 board feet. In 2012, Marigold planted new seedlings to...