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 the year, Bedford harvested 180,000 trees. Required: 1. Compute the depletion per tree. Round your answer to the nearest cent and use the rounded value for any following calculations. $ per tree 2. Prepare the journal entry to record the harvesting of the trees. If an amount box does not require an entry, leave it blank. Dec. 31

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 the year, Bedford harvested 180,000 trees. Required: 1. Compute the depletion per tree. Round your answer to the nearest cent and use the rounded value for any following calculations. $ per tree 2. Prepare the journal entry to record the harvesting of the trees. If an amount box does not require an entry, leave it blank. Dec. 31

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7PB: Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete...

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