Windsor Timber Company owns 9,000acres of timberland purchased in 2014 at a cost of $1,512per acre. At the time of purchase, the land without the timber was valued at $432per acre. In 2015, Windsor built fire lanes and roads, with a life of 30years, at a cost of $90,720. Every year, Windsor sprays to prevent disease at a cost of $3,240per year and spends $7,560to maintain the fire lanes and roads. During 2016, Windsor selectively logged and sold756,000board feet of timber, of the estimated 3,780,000board feet. In 2017, Windsor planted new seedlings to replace the trees cut at a cost of $108,000.
Windsor Timber Company owns 9,000acres of timberland purchased in 2014 at a cost of $1,512per acre. At the time of purchase, the land without the timber was valued at $432per acre. In 2015, Windsor built fire lanes and roads, with a life of 30years, at a cost of $90,720. Every year, Windsor sprays to prevent disease at a cost of $3,240per year and spends $7,560to maintain the fire lanes and roads. During 2016, Windsor selectively logged and sold756,000board feet of timber, of the estimated 3,780,000board feet. In 2017, Windsor planted new seedlings to replace the trees cut at a cost of $108,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Qw.9.
Transcribed Image Text:(b)
Windsor has not logged since 2016. If Windsor logged and sold 972,000board feet of timber in 2027, when the timber cruise
(appraiser) estimated 5,400,000board feet, determine the cost of timber sold related to depletion for 2027. (Do not round
intermediate calculations. Round final answers to O decimal places, e.g. 5,125.)
Cost of timber sold
$
TA
Transcribed Image Text:Windsor Timber Company owns 9,000acres of timberland purchased in 2014 at a cost of $1,512per acre. At the time of purchase, the
land without the timber was valued at $432per acre. In 2015, Windsor built fire lanes and roads, with a life of 30years, at a cost of
$90,720. Every year, Windsor sprays to prevent disease at a cost of $3,240per year and spends $7,560to maintain the fire lanes and
roads. During 2016, Windsor selectively logged and sold756,000board feet of timber, of the estimated 3,780,000board feet. In 2017,
Windsor planted new seedlings to replace the trees cut at a cost of $108,000.
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