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Depletion of Timber Bedford Ridge Development purchased a 5,000-acre tract of forested land in southern Georgia. The tract contained about 1,650,000 pine trees that, when mature, can be used for utility poles. Bedford paid $800 per acre for the timberland. The land has a residual value of $107 per acre when all the trees are harvested. During 2019, Bedford harvested 180,000 trees. Required: 1. Compute the depletion per tree. 2. Prepare the journal entry to record the harvesting of the trees for 2019.

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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

Solutions

Chapter
Section
Chapter 7, Problem 66E
Textbook Problem

Depletion of Timber

Bedford Ridge Development purchased a 5,000-acre tract of forested land in southern Georgia. The tract contained about 1,650,000 pine trees that, when mature, can be used for utility poles. Bedford paid $800 per acre for the timberland. The land has a residual value of $107 per acre when all the trees are harvested. During 2019, Bedford harvested 180,000 trees.

Required:

1. Compute the depletion per tree.

2. Prepare the journal entry to record the harvesting of the trees for 2019.

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Chapter 7 Solutions

Cornerstones of Financial Accounting
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