Reference no: EM132525560
Question - Beerbo owns 7,000 acres of timberland, which was purchased in 2009 at a cost of $1,400 per acre. At the time of the purchase, the land (without the timber) was valued at $400 per acre. Beerbo estimates that it can harvest 3,500,000 total board feet of timber from the property. Each year, Beerbo pays $3,000 to spray the land in order to prevent timber-killing disease.
In 2010, Beerbo built fire lanes and roads at a cost of $84,000. Each year, Beerbo pays $7,000 to maintain the fire lanes and roads.
During 2011, Beerbo selectively logged 750,000 board feet of timber.
If the land was valued at $400 per acre in 2009, what value per acre would Beerbo have allocated to the timber at that time?
In 2009, what did Beerbo report as the total cost of the timber?
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What value per acre would Beerbo have allocated
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What is the depletion rate of the timber
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How much depletion of timber occurred
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What is the depletion rate per ton
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What is the amount extracted
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