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.

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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