Timber,Inc.purchased land for $500,000.It is expected to produce a total of 200,000 cords of wood over 5 years,after which it will be sold for $100,000.In 2011,39,000 cords of wood were cut.In 2012,41,000 cords of wood were cut.
1.What is depletion expense per cord of wood?
$__________________
2.How much depletion should be recorded in 2011?
$_______________________
3.How much depletion should be recorded in 2012? $_______________________

Question

Timber,Inc.purchased land for $500,000.It is expected to produce a total of 200,000 cords of wood over 5 years,after which it will be sold for $100,000.In 2011,39,000 cords of wood were cut.In 2012,41,000 cords of wood were cut.
1.What is depletion expense per cord of wood? 
$__________________
2.How much depletion should be recorded in 2011? 
$_______________________
3.How much depletion should be recorded in 2012? $_______________________

Quizplus · Accepted Answer

The Answer of Timber,Inc.purchased land for $500,000.It is expected to produce a total of 200,000 cords of wood over 5 years,after which it will be sold for $100,000.In 2011,39,000 cords of wood were cut.In 2012,41,000 cords of wood were cut.
1.What is depletion expense per cord of wood? 
$__________________
2.How much depletion should be recorded in 2011? 
$_______________________
3.How much depletion should be recorded in 2012? $_______________________