Concord Timber Company owns 9,000 acres of timberland purchased in 2014 at a cost of $1,470 per acre. At the time of purchase, the land without the timber was valued at $420 per acre. In 2015, Concord built fire lanes and roads, with a life of 30 years, at a cost of $88,200. Every year, Concord sprays to prevent disease at a cost of $3,150 per year and spends $7,350 to maintain the fire lanes and roads. During 2016, Concord selectively logged and sold 735,000 board feet of timber, of the estimated 3,675,000 board feet. In 2017, Concord planted new seedlings to replace the trees cut at a cost of $105,000. (a) x Your answer is incorrect. Determine the depreciation expense and the cost of timber sold related to depletion for 2016. Depreciation expense Cost of timber sold $ Save for Later $ eTextbook and Medial 1890000 1379700 Attempts: 1 of 5 used Submit Answer

Concord Timber Company owns 9,000 acres of timberland purchased in 2014 at a cost of $1,470 per acre. At the time of purchase, the land without the timber was valued at $420 per acre. In 2015, Concord built fire lanes and roads, with a life of 30 years, at a cost of $88,200. Every year, Concord sprays to prevent disease at a cost of $3,150 per year and spends $7,350 to maintain the fire lanes and roads. During 2016, Concord selectively logged and sold 735,000 board feet of timber, of the estimated 3,675,000 board feet. In 2017, Concord planted new seedlings to replace the trees cut at a cost of $105,000. (a) x Your answer is incorrect. Determine the depreciation expense and the cost of timber sold related to depletion for 2016. Depreciation expense Cost of timber sold $ Save for Later $ eTextbook and Medial 1890000 1379700 Attempts: 1 of 5 used Submit Answer

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7PB: Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete...

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Concord Timber Company owns 9,000 acres of timberland purchased in 2014 at a cost of $1.470 per acre. At the time of purchase. the land without the timber was valued at $420 per acre. In 2015, Concord built fire lanes and roads, with a life of 30 years, at a cost of $88.200. Every year, Concord sprays to prevent disease at a cost of $3,150 per year and spends $7,350 to maintain the fire lanes and roads. During 2016, Concord selectively logged and sold 735,000 board feet of timber, of the estimated 3,675,000 board feet. In 2017, Concord planted new seedlings to replace the trees cut at a cost of $105,000. Determine the depreciation expense and the cost of timber sold related to depletion for 2016. (b) Depreciation expense Cost of timber sold $ Cost of timber sold $ $ 2940 2,850,000 Concord has not logged since 2016. If Concord logged and sold 945,000 board feet of timber in 2027, when the timber cruise (appraiser) estimated 5,250,000 board feet, determine the cost of timber sold related…
Wildhorse Timber Company owns 9,000 acres of timberland purchased in 2014 at a cost of $1,652 per acre. At the time of purchase, the land without the timber was valued at $472 per acre. In 2015, Wildhorse built fire lanes and roads, with a life of 30 years, at a cost of $99,120. Every year, Wildhorse sprays to prevent disease at a cost of $3,540 per year and spends $8,260 to maintain the fire lanes and roads. During 2016, Wildhorse selectively logged and sold 826,000 board feet of timber, of the estimated 4,130,000 board feet. In 2017, Wildhorse planted new seedlings to replace the trees cut at a cost of $118,000. (a) Your Answer Correct Answer (Used) Determine the depreciation expense and the cost of timber sold related to depletion for 2016. (b) Depreciation expense $ 3,304 Cost of timber sold $ 2,124,000 Your answer is incorrect. Wildhorse has not logged since 2016. If Wildhorse logged and sold 1,062,000 board feet of timber in 2027, when the timber cruise (appraiser) estimated…
Swifty Timber Company owns 9,000 acres of timberland purchased in 2014 at a cost of $1,442 per acre. At the time of purchase, the land without the timber was valued at $412 per acre. In 2015, Swifty built fire lanes and roads, with a life of 30 years, at a cost of $86,520. Every year, Swifty sprays to prevent disease at a cost of $3,090 per year and spends $7,210 to maintain the fire lanes and roads. During 2016, Swifty selectively logged and sold 721,000 board feet of timber, of the estimated 3,605,000 board feet. In 2017, Swifty planted new seedlings to replace the trees cut at a cost of $103,000. (a) Determine the depreciation expense and the cost of timber sold related to depletion for 2016. Depreciation expense Cost of timber sold $ GA $
Stanislaw Timber Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,400 per acre. At the time of purchase, the land without the timber was valued at $400 per acre. In 2010, Stanislaw built fire lanes and roads, with a life of 30 years, at a cost of $84,000. Every year, Stanislaw sprays to prevent disease at a cost of $3,000 per year and spends $7,000 to maintain the fire lanes and roads. During 2011, Stanislaw selectively logged and sold 700,000 board feet of timber, of the estimated 3,500,000 board feet. In 2012, Stanislaw 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 2011. b. Stanislaw has not logged since 2011. If Stanislaw logged and sold 900,000 board feet of timber in 2022, when the timber cruise (appraiser) estimated 5,000,000 board feet, determine the cost of timber sold related to depletion for 2022.
Bronson Paper Products purchased 10,000 acres of forested timberland in March 2020. The company paid $1,700 per acre for this land, which was above the $800 per acre most farmers were paying for cleared land. During April, May, June, and July 2020, Bronson cut enough timber to build roads using moveable equipment purchased on April 1, 2020. The cost of the roads was $250,000, and the cost of the equipment was $225,000; this equipment was expected to have a $9,000 salvage value and would be used for the next 15 years. Bronson selected the straight-line method of depreciation for the moveable equipment. Bronson began actively harvesting timber in August and by December had harvested and sold 540,000 board feet of timber of the estimated 6,750,000 board feet available for cutting. In March 2021, Bronson planted new seedlings in the area harvested during the winter. Cost of planting these seedlings was $120,000. In addition, Bronson spent $8,000 in road maintenance and $6,000 for pest…
Concord Company owns 9,000 acres of timberland purchased in 2009 at a cost of $1,470 per acre. At the time of purchase, the land without the timber was valued at $420 per acre. In 2010, Concord built fire lanes and roads, with a life of 30 years, at a cost of $88,200. Every year, Concord sprays to prevent disease at a cost of $3,150 per year and spends $7,350 to maintain the fire lanes and roads. During 2011, Concord selectively logged and sold 735,000 board feet of timber, of the estimated 3,675,000 board feet. In 2012, Concord planted new seedlings to replace the trees cut at a cost of $105,000. A-Determine the depreciation expense and the cost of timber sold related to depletion
Derringdo is a broadband provider which receives government assistance to provide broadband to remote areas. Derringdo invested in a new server at a gross cost of $800,000 on 1 October 20X2. The server has an estimated life of ten years with a residual value equal to 15% of its gross cost. Derringdo uses straight-line depreciation on a time apportioned basis. The company received a government grant of 30% of its cost price of the server at the time of purchase. The terms of the grant are that if the company retains the asset for four years or more, then no repayment liability will be incurred. Derringdo has no intention of disposing of the server within the first four years. Derringdo's accounting policy for capital-based government grants is to treat them as deferred credits and release them to income over the life of the asset to which they relate. What is the net amount that will be charged to operating expenses in respect of the server for the year ended 31 March 20X3? A $10,000 B…
Happy Timber, Inc. owns timberland that is used to supply firewood. The timberland was purchased for $480,000 of which $125,000 relates to the land itself, and it is expected to produce 1,000,000 total pieces of firewood over the next 5 years. If 75,000 pieces of firewood are cut and sold during the year, prepare the journal entries for the depletion and sale of the firewood. *Note: should have two iournal entries.
Tree Lovers Inc. purchased 100 acres of woodland in which the company intends to harvest the complete forest, leaving the land barren and worthless. Tree Lovers paid $2,600,000 for the land. Tree Lovers will sell the lumber as it is harvested and expects to deplete it over five years (20 acres in year one, 31 acres in year two, 23 acres in year three, 11 acres in year four, and 15 acres in year five). Calculate the depletion expense for the next five years. Year 1 Year 2 %$4 Year 3 Year 4 Year 5 Prepare the journal entry for year one. If an amount box does not reguire an entry, leave it blank. 00
(Depletion Computations—Timber) Stanislaw Timber Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,400 per acre. At the time of purchase, the land without the timber was valued at $400 per acre. In 2007, Stanislaw built fire lanes and roads, with a life of 30 years, at a cost of $84,000. Every year, Stanislaw sprays to prevent disease at a cost of $3,000 per year and spends $7,000 to maintain the fire lanes and roads. During 2008, Stanislaw selectively logged and sold 700,000 board feet of timber, of the estimated 3,500,000 board feet. In 2009, Stanislaw 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 2008.(b) Stanislaw has not logged since 2008. If Stanislaw logged and sold 900,000 board feet of timber in 2019, when the timber cruise (appraiser) estimated 5,000,000 board feet, determine the cost of timber sold related to depletion for…
Wildhorse Logging and Lumber Company owns 2,970 acres of timberland on the north side of Mount Leno, which was purchased in 2013 at a cost of $600 per acre. In 2025, Wildhorse began selectively logging this timber tract. In May 2025, Mount Leno erupted. burying the timberland of Wildhorse under a foot of ash. All of the timber on the Wildhorse tract was downed. In addition, the logging roads, built at a cost of $152,200, were destroyed, as well as the logging equipment, with a net book value of $272,600. At the time of the eruption, Wildhorse had logged 20% of the estimated 524,200 board feet of timber. Prior to the eruption, Wildhorse estimated the land to have a value of $210 per acre after the timber was harvested. Wildhorse includes the logging roads in the depletion base. Wildhorse estimates it will take 3 years to salvage the downed timber at a cost of $653,000. The timber can be sold for pulp wood at an estimated price of $2 per board foot. The value of the land is unknown, but…
Eryn Ltd is a forestry company that owns a plantation forest of silver firs trees. Typically, silver firs trees take 20-50 years until they are mature to harvest. The trees were planted in 2010. At the start of the 2021 financial year, there were 1,520 silver firs trees on the plantation with each valued at $170. At the end of the financial year, due to air pollution, Eryn Ltd had only 1,250 trees but each was valued at $220. Eryn Ltd also had equipment that valued at a book value of $130,000 ($26,000 accumulated depreciation) as at the end of 2021. This equipment was revalued to $140,000. In addition, Eryn Ltd paid $20,000 pruning expenses in 2021. Required: a) Record the appropriate journal entries and show your workings. Accounts Debit $ Credit $ b) Based on your answers in (a), calculate…