Calculate the depletion of the timber tract

Assignment Help Accounting Basics
Reference no: EM133125627

Question - At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,730,000. After the timber is cleared, the land will have a residual value of $760,000. Roads to enable logging operations were constructed and completed on March 30, 2021. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $297,000. During 2021, Terra logged 660,000 of the estimated 6.6 million board feet of timber.

Required - Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of-production method is used for both assets.

Reference no: EM133125627

Questions Cloud

Which transfer price from mexico to the usa will maximize : If the material is sold in the US for USD 475, calculate which transfer price from Mexico to the USA (full cost or market price) will maximize
Create a visual version of the proposed product : Identify how the proposed packaging design protects the product, protects the handlers/ users, protects the environment, and differentiates itself from
Amount of the down payment and mortgage amount : 1. How much money should be invested in an account that earns 3% interest, compounded monthly, in order to have $15,000 in 6 years? (Round your answer to two de
Healthy manufacturing and service sector : "Until a nation develops a healthy manufacturing and service sector, it will always be vulnerable to exploitation by other nations" Defend or refute this statem
Calculate the depletion of the timber tract : Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of-production method is used for both assets
What about the long-run hypothesis : In most economies of the world, is the short-run Phillips curve hypothesis still relevant? What about the long-run hypothesis?
What is the total value of this firm : A 40 percent owner of Nguyen Medical Group is electing to retire. Ignoring taxes, what is the total value of this firm
What is the expected value of these outcomes : Question - A project has the following projected outcomes in dollars: $240, $300, and $500. What is the expected value of these outcomes
What is the market price per share for markland corp : Markland Corp has a book value of $40 per share, earnings per share of $4, and a market/book value of 1.25 X. What is the market price per share for Markland

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the earnings per share of common stock

Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $10,000,000

  Prepare a journal entry for the mowing inc transaction

Prepare a journal entry for the Mowing Inc transaction. Mowing Inc. billed the client $1,000 for service rendered; of this amount, $600 was received in cash

  The july transactions of acorn industries are described

The July transactions of Acorn Industries are described in Problem 7 1B. In Problem 7 1B, Acorn Industries completes these transactions during July of the current year (the terms of all its credit sales are 2/10, n/30).

  Prepare the entry to record the receipt of payment in pounds

How are short-term held-to-maturity securities reported (valued) on the balance sheet?

  Ethics and governance in changing depreciation methods

Discuss the ethics and governance in changing depreciation methods for the case below (1000 words)

  What is the revaluation surplus balance at december

What is the revaluation surplus balance at December 31, 2015, before recognition of the impairment loss? Koto, Inc. purchased a machinery on January 1, 2013

  Compute pronghorn earnings per share

During 2020, Pronghorn had outstanding 300,000 shares of common stock. Compute Pronghorn's 2020 earnings per share

  What is nash manufacturing cycle efficiency

Nash Corporation manufactures and sells custom snowmobiles. What is Nash's manufacturing cycle efficiency (MCE) for its snowmobiles

  Calculate amount of freight-in reported by jackson company

Jackson Company reported the following information relating to its inventory: purchases - $62,000, Calculate amount of freight-in reported by Jackson Company

  Calculate the internal rate of return on diagnostic machine

The machine has an expected useful life of 16 years. Calculate the internal rate of return on the diagnostic machine

  Applying the lower of cost and net realizable value

What unit value should Ross use when applying the lower of cost and net realizable value rule to ending inventory?

  Where on balance sheet account balance representing funds

Where on the balance sheet would the account balance representing funds received for games not yet played be classified

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