Question

On July 1, 2010, Premier Paper Company purchased 1,000 acres of timberland for $22,427,500. The land without the timber is valued at $2,427,500.
The land contained 5,494,505 board feet of timber. During the year ended June 30, 2011, Premier Paper Company logged and sold 525,000 board feet of timber.
1. How much depletion should Premier Paper Company record for the year ended June 30, 2011?
2. What is the book value of the timber at June 30, 2011, the end of the fiscal year?



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  • CreatedSeptember 01, 2014
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