Carter timber company owns 10000 acres of timberland

Reference no: EM13391408

Carter Timber Company owns 10,000 acres of timberland purchased in 2003 at a cost of $2,000 per acre. At the time of purchase the land without the timber was valued at $500 per acre. In 2004, Carter built fire lanes and roads, with a life of 30 years, at a cost of $90,000. Every year Carter sprays to prevent disease at a cost of $8,000 per year and spends $4,000 to maintain the fire lanes and roads. During 2005, Carter selectively logged and sold 700,000 board feet of timber, of the estimated 2,000,000 board feet. In 2004, Carter planted new seedlings to replace the trees cut at a cost of $100,000.

Instructions

(a) Determine the depreciation expense and the cost of timber sold related to depletion for 2005.

(b) Carter has not logged since 2005. If Carter logged and sold 900,000 board feet of timber in 2016, when the timber cruise (appraiser) estimated 4,000,000 board feet, determine the cost of timber sold related to depletion for 2016.

Reference no: EM13391408

Questions Cloud

Capital structure analysis which examines the various debt : prepare a three-page analysis of the corporate financial decision-making process at your selected organization selected

Your manager asks you to manage a project which is : consider the following scenario.your manager asks you to manage a project that is estimated to last 60-90 days. he

The purpose of the discussion board is to allow students to : the discussion board db is part of the core of online learning. classroom discussion in an online environment requires

Buhner company constructed a building at a cost of 3000000 : buhner company constructed a building at a cost of 3000000 and occupied it beginning in january 1995. it was estimated

Carter timber company owns 10000 acres of timberland : carter timber company owns 10000 acres of timberland purchased in 2003 at a cost of 2000 per acre. at the time of

Require a paper written no particular amount of words as : need a paper written no particular amount of words as long as the info below is answered its for the rirodan

Aaron company purchased land on february 1 2014 at a cost : aaron company purchased land on february 1 2014 at a cost of 2000000. it estimated that a total of 50000 tons of

Evaluate each segmentation strategy and determine which : using an organization and a product of your choice write a paper discussing the major segmentation strategies including

Examine competitive environment to determine corporations : choose an industry you have not yet written about in this course and one publicly traded corporation within that

User Account

All Pages