Kingbird Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,652 per acre.
Question:
Kingbird Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,652 per acre. At the time of purchase, the land without the timber was valued at $472 per acre. In 2007, Kingbird built fire lanes and roads, with a life of 30 years, at a cost of $99,120. Every year, Kingbird sprays to prevent disease at a cost of $3,540 per year and spends $8,260 to maintain the fire lanes and roads. During 2008, Kingbird selectively logged and sold 826,000 board feet of timber, of the estimated 4,130,000 board feet. In 2009, Kingbird planted new seedlings to replace the trees cut at a cost of $118,000.
Part 1
New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is partially correct.
Determine the depreciation expense and the cost of timber sold related to depletion for 2008. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to 0 decimal places, e.g. 5,125.)
| Depreciation expense | $ | |
| Cost of timber sold | $ |
Expert Answer:
Determine the depreciation expense and the cost of timber sold related to depletion for 20... View the full answer
