Bonita Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of...
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Bonita Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,599 per acre. At the time of purchase, the land was estimated to have a value of $399 per acre without the timber. Bonita Company has not logged this tract since it was purchased. In 2020, Bonita had the timber cruised. The cruise (appraiser) estimated that each acre contained 9,840 board feet of timber. In 2020, Bonita built 10 miles of roads at a cost of $8,460 per mile. After the roads were completed, Bonita logged and sold 4,305 trees containing 1,025,000 board feet.
Determine the cost of timber sold related to depletion for 2020. (Roundanswer to 0 decimal places, e.g. 5,125.)
Cost of timber sold
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