Rayonier Forrest Resources purchased a small tract of timber land for $70,000 that contained 25,000 trees. The value of the land was estimated to be $20,000. In the first year of operation, the lumber company cut down 7000 trees. According to the cost depletion method, the depletion deduction for year 1 is closest to: (Hint: Value of land cannot be depreciated or depleted.) a. $2000b. $7000c. $10,000d. $14,000

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