Swifty Timber Company owns 9,000 acres of timberland purchased in 2014 at a cost of $1,442 per acre. At the time of purchase, the land without the timber was valued at $412 per acre. In 2015, Swifty built fire lanes and roads, with a life of 30 years, at a cost of $86,520. Every year, Swifty sprays to prevent disease at a cost of $3,090 per year and spends $7,210 to maintain the fire lanes and roads. During 2016, Swifty selectively logged and sold 721,000 board feet of timber, of the estimated 3,605,000 board feet. In 2017, Swifty planted new seedlings to replace the trees cut at a cost of $103,000. (a) Determine the depreciation expense and the cost of timber sold related to depletion for 2016. Depreciation expense $ Cost of timber sold $

Swifty Timber Company owns 9,000 acres of timberland purchased in 2014 at a cost of $1,442 per acre. At the time of purchase, the land without the timber was valued at $412 per acre. In 2015, Swifty built fire lanes and roads, with a life of 30 years, at a cost of $86,520. Every year, Swifty sprays to prevent disease at a cost of $3,090 per year and spends $7,210 to maintain the fire lanes and roads. During 2016, Swifty selectively logged and sold 721,000 board feet of timber, of the estimated 3,605,000 board feet. In 2017, Swifty planted new seedlings to replace the trees cut at a cost of $103,000. (a) Determine the depreciation expense and the cost of timber sold related to depletion for 2016. Depreciation expense $ Cost of timber sold $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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