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Tamarisk Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,624 per acre. At the time of purchase, the land without the timber was valued at $464 per acre. In 2010, Tamarisk built ?re lanes and roads, with a life of 30 years, at a cost of $97,440. Every year, Tamarisk sprays to prevent disease at a cost of $3,480 per year and spends $8,120 to maintain the ?re lanes and roads. During 2011, Tamarisk selectiver logged and sold 8 12,000 board feet of timber, of the estimated 4,060,000 board feet. In 2012,Tamarisk planted new seedlings to replace the trees cut at a cost of $116,000.
Problem 1: Determine the depreciation expense and the cost of timber sold related to depletion for 2011.
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