Larkfield Logging, Corp purchased the rights to 2,500 acres of forest. Larkfield intends to harvest the entire forest over a period of 10 years. At the end of year 10 the forest will be worthless. Larkfield paid $5,000,000 for the land and estimates to deplete the land for the first 5 years as follows. Depletion Schedule Depletion Acres Expense Year 1 150 Year 2 300 Year 3 250 Page 1 Year 4 150 Year 5 100 Required Calculate the depletion rate per acre. Depletion rate per acre Calculate depletion expense for each of the first five years by completing the Depletion Schedule. Record depletion expense for year 1. General Journal DR CR

Larkfield Logging, Corp purchased the rights to 2,500 acres of forest. Larkfield intends to harvest the entire forest over a period of 10 years. At the end of year 10 the forest will be worthless. Larkfield paid $5,000,000 for the land and estimates to deplete the land for the first 5 years as follows. Depletion Schedule Depletion Acres Expense Year 1 150 Year 2 300 Year 3 250 Page 1 Year 4 150 Year 5 100 Required Calculate the depletion rate per acre. Depletion rate per acre Calculate depletion expense for each of the first five years by completing the Depletion Schedule. Record depletion expense for year 1. General Journal DR CR

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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