Nash Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,586 per acre. At the time of purchase, t estimated to have a value of $366 per acre without the timber. Nash Company has not logged this tract since it was purchas 2020, Nash had the timber cruised. The cruise (appraiser) estimated that each acre contained 9,760 board feet of timber. In Nash built 10 miles of roads at a cost of $7,800 per mile. After the roads were completed, Nash logged and sold 4,270 trees containing 1,037,000 board feet. (a)
Nash Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,586 per acre. At the time of purchase, t estimated to have a value of $366 per acre without the timber. Nash Company has not logged this tract since it was purchas 2020, Nash had the timber cruised. The cruise (appraiser) estimated that each acre contained 9,760 board feet of timber. In Nash built 10 miles of roads at a cost of $7,800 per mile. After the roads were completed, Nash logged and sold 4,270 trees containing 1,037,000 board feet. (a)
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Nash Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,586 per acre. At the time of purchase, the land was
estimated to have a value of $366 per acre without the timber. Nash Company has not logged this tract since it was purchased. In
2020, Nash had the timber cruised. The cruise (appraiser) estimated that each acre contained 9,760 board feet of timber. In 2020,
Nash built 10 miles of roads at a cost of $7,800 per mile. After the roads were completed, Nash logged and sold 4,270 trees
containing 1,037,000 board feet.
(a)
Your answer is correct.
Determine the cost of timber sold related to depletion for 2020. (Round answer to 0 decimal places, e.g. 5,125.)
Cost of timber sold $
LA
129,625
Transcribed Image Text:If Nash depreciates the logging roads on the basis of timber cut, determine the depreciation expense for 2020. (Round answer to O
decimal places, e.g. 5,125.)
Depreciation expense
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