Assume that the roads are usable only for logging

Assignment Help Accounting Basics
Reference no: EM131121844

1. Natural Resources-Timber Bronson Paper Products purchased 10,000 acres of forested timberland in March 2010. The company paid $1,700 per acre for this land, which was above the $800 per acre most farmers were paying for cleared land. During April, May, June, and July 2010, Bronson cut enough timber to build roads using moveable equipment purchased on April 1, 2010. The cost of the roads was $250,000, and the cost of the equipment was $225,000; this equipment was expected to have a $9,000 salvage value and would be used for the next 15 years. Bronson selected the straight-line method of depreciation for the moveable equipment. Bronson began actively harvesting timber in August and by December had harvested and sold 540,000 board feet of timber of the estimated 6,750,000 board feet available for cutting. In March 2011, Bronson planted new seedlings in the area harvested during the winter. Cost of planting these seedlings was $120,000. In addition, Bronson spent $8,000 in road maintenance and $6,000 for pest spraying during calendar-year 2011. The road maintenance and spraying are annual costs. During 2011 Bronson harvested and sold 774,000 board feet of timber of the estimated 6,450,000 board feet available for cutting. In March 2012, Bronson again planted new seedlings at a cost of $150,000, and also spent $15,000 on road maintenance and pest spraying. During 2012, the company harvested and sold 650,000 board feet of timber of the estimated 6,500,000 board feet available for cutting.

Compute the amount of depreciation and depletion expense for each of the 3 years (2010, 2011, 2012). Assume that the roads are usable only for logging and therefore are included in the depletion base. 

Reference no: EM131121844

Questions Cloud

Scheduling problems viewed as assignment problems : (Scheduling Problems Viewed as Assignment Problems) A machine can be used to perform a subset of N given tasks over T time periods. At each time period t, only a subset A(t) of tasks can be performed. Each task j has value j (t) when performed at ..
Develop a network security policy for environment : Give consideration to each service, and recommend protection measures. Risk mitigation is of extreme importance. Confidentiality and integrity are important factors of network security. However, it should not affect availability.
Despite social differences among individuals-culture-race : Sociologists explain that despite social differences among individuals, such as language, culture, race, ethnicity, religion, age, gender, and social class, we all have the capacity to communicate with one another. Discuss the following: What are som..
Rollout algorithms based on greedy algorithms : Rollout Algorithms Based on Greedy Algorithms) In the context of the rollout algorithm, suppose that given a partial solution
Assume that the roads are usable only for logging : Compute the amount of depreciation and depletion expense for each of the 3 years (2010, 2011, 2012). Assume that the roads are usable only for logging and therefore are included in the depletion base.
Determine the tension in the cable : A 50-kg acrobat pedals her unicycle across the taut but slightly elastic cable. If the deflection at the center of the 18-m span is 75 mm, determine the tension in the cable. Neglect the effects of the weights of the cable and unicycle
The context of simulated annealing : (Simulated Annealing) In the context of simulated annealing, assume that T is kept constant and let pxy be the probability that when the current solution is x, the next solution sampled is y.
Public-private and luxury-necessity nature of goods : We know that the influence of reference groups on consumers’ purchase behaviour is not equal for all goods. The public-private and luxury-necessity nature of goods are significant moderating variables in the relative strength of the relationship betw..
Represent the available spendable resources of the entity : What is a fund and how is it used - How does the balance of a fund represent the available spendable resources of the entity?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the amount of the child and dependent care credit

calculate the amount of the child and dependent care credit allowed for 2008 in each of the following cases assuming

  What are some key elements of internal control

Why do auditors have to consider the internal controls of the organization?  What are some key elements of internal control?  Which are the most important?  How will the auditor have to modify the audit program if the internal controls are deemed ina..

  The finishing department of paragon manufacturing co

the finishing department of paragon manufacturing co. prepared the following factory overhead cost budget for october

  Determine the effect of these errors on abcs financial

inventory errors points 1 use the following information to answer the next 4 questions abc inc. uses a periodic

  The total selling expenses for the month of january

What are the total selling expenses for the month of January?

  Define the concepts of present value payback method

define the concepts of present value payback method internal rate of return or net present value and elaborate on your

  Purpose of accounting and financial reporting

The purpose of accounting and financial reporting within your organization or an organization with which you are familiar.

  How bout now a clothing retailer had cost of goods sold of

how bout now a clothing retailer had cost of goods sold of 525000 last year. the beginning inventory balance was 32500

  Division b uses the type of product produced by division a

horton corporation has two operating divisions a and b. the following information is provided for division a unit

  Net cost of machine for capital budgeting purposes

What is the net cost of the machine for capital budgeting purposes? (That is, what is the year 0 net cash flow?) What are the net operating cash flows in Years 1,2, and 3? What is the additional Year 3 cash flow (that is, the after-tax salvage and th..

  The term of the noncancelable lease is 6 years with no

on january 1 2011 palmer company leased equipment to woods corporation. the following information pertains to this

  How partnership accounting differ from corporate accounting

How does partnership accounting differ from corporate accounting? The goodwill method will be used. What is Cotton's capital balance after this new investment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd