Whispering Company owns a 7,000-acre tract of timber purchased in 2006 at a cost of $1,417 per acre. At the time of purchase, the land was estimated to have a value of $317 per acre without the timber. Whispering Company has not logged this tract since it was purchased. In 2020, Whispering had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,720 board feet of timber. In 2020, Whispering built 10 miles of roads at a cost of $8,400 per mile. After the roads were completed, Whispering logged and sold 3,815 trees containing 926,500 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 $ 116875

Whispering Company owns a 7,000-acre tract of timber purchased in 2006 at a cost of $1,417 per acre. At the time of purchase, the land was estimated to have a value of $317 per acre without the timber. Whispering Company has not logged this tract since it was purchased. In 2020, Whispering had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,720 board feet of timber. In 2020, Whispering built 10 miles of roads at a cost of $8,400 per mile. After the roads were completed, Whispering logged and sold 3,815 trees containing 926,500 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 $ 116875

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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