Reference no: EM132464174

Problem - Concord Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,484 per acre. At the time of purchase, the land without the timber was valued at $424 per acre. In 2007, Concord built fire lanes and roads, with a life of 30 years, at a cost of $89,040. Every year, Concord sprays to prevent disease at a cost of $3,180 per year and spends $7,420 to maintain the fire lanes and roads. During 2008, Concord selectively logged and sold 742,000 board feet of timber, of the estimated 3,710,000 board feet. In 2009, Concord planted new seedlings to replace the trees cut at a cost of $106,000.

Required - Determine the depreciation expense and the cost of timber sold related to depletion for 2008.