American Pulp Corporation (APC) has entered into a contract to harvest timber for $450,000. The total estimated
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American Pulp Corporation (APC) has entered into a contract to harvest timber for $450,000. The total estimated available harvest is 150 million board-feet.
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What is the depletion allowance for Years 1 to 3, if 42, 45 and 35 million board-feet are harvested by APC in those years?
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After 3 years, the total available harvest for the original tract was reestimated at 180 million board-feet. Compute the depletion allowances for Years 4 and beyond.
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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