Wildhorse Logging and Lumber Company owns 2,970 acres of timberland on the north side of Mount Leno, which was purchased in 2013 at a cost of $600 per acre. In 2025, Wildhorse began selectively logging this timber tract. In May 2025, Mount Leno erupted, burying the timberland of Wildhorse under a foot of ash. All of the timber on the Wildhorse tract was downed. In addition, the logging roads, built at a cost of $152,200, were destroyed, as well as the logging equipment, with a net book value of $272,600. At the time of the eruption, Wildhorse had logged 20% of the estimated 524,200 board feet of timber. Prior to the eruption, Wildhorse estimated the land to have a value of $210 per acre after the timber was harvested. Wildhorse includes the logging roads in the depletion base. Wildhorse estimates it will take 3 years to salvage the downed timber at a cost of $653,000. The timber can be sold for pulp wood at an estimated price of $2 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties. (a) Your answer is incorrect. Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount Leno. (Round per unit answer to 2 decimal places, e.g. 0.45.) Depletion cost per board foot $
Wildhorse Logging and Lumber Company owns 2,970 acres of timberland on the north side of Mount Leno, which was purchased in 2013 at a cost of $600 per acre. In 2025, Wildhorse began selectively logging this timber tract. In May 2025, Mount Leno erupted, burying the timberland of Wildhorse under a foot of ash. All of the timber on the Wildhorse tract was downed. In addition, the logging roads, built at a cost of $152,200, were destroyed, as well as the logging equipment, with a net book value of $272,600. At the time of the eruption, Wildhorse had logged 20% of the estimated 524,200 board feet of timber. Prior to the eruption, Wildhorse estimated the land to have a value of $210 per acre after the timber was harvested. Wildhorse includes the logging roads in the depletion base. Wildhorse estimates it will take 3 years to salvage the downed timber at a cost of $653,000. The timber can be sold for pulp wood at an estimated price of $2 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties. (a) Your answer is incorrect. Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount Leno. (Round per unit answer to 2 decimal places, e.g. 0.45.) Depletion cost per board foot $
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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Transcribed Image Text:Wildhorse Logging and Lumber Company owns 2,970 acres of timberland on the north side of Mount Leno, which was purchased in
2013 at a cost of $600 per acre. In 2025, Wildhorse began selectively logging this timber tract. In May 2025, Mount Leno erupted.
burying the timberland of Wildhorse under a foot of ash. All of the timber on the Wildhorse tract was downed. In addition, the logging
roads, built at a cost of $152,200, were destroyed, as well as the logging equipment, with a net book value of $272,600.
At the time of the eruption, Wildhorse had logged 20% of the estimated 524,200 board feet of timber. Prior to the eruption,
Wildhorse estimated the land to have a value of $210 per acre after the timber was harvested. Wildhorse includes the logging roads in
the depletion base.
Wildhorse estimates it will take 3 years to salvage the downed timber at a cost of $653,000. The timber can be sold for pulp wood at
an estimated price of $2 per board foot. The value of the land is unknown, but must be considered nominal due to future uncertainties.
(a)
Your answer is incorrect.
Determine the depletion cost per board foot for the timber harvested prior to the eruption of Mount Leno. (Round per unit answer
to 2 decimal places, e.g. 0.45.)
Depletion cost per board foot
$
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