Reference no: EM133137644

Question - Riverbed Company owns a 7,360-acre tract of timber purchased in 2006 at a cost of $1,326 per acre. At the time of purchase, the land was estimated to have a value of $306 per acre without the timber. Riverbed Company has not logged this tract since it was purchased. In 2020, Riverbed had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,160 board feet of timber. In 2020, Riverbed built 10 miles of roads at a cost of $7,980 per mile. After the roads were completed, Riverbed logged and sold 3,570 trees containing 867,000 board feet. Determine the cost of timber sold related to depletion for 2020.