Swifty Company owns a 7,400-acre tract of timber purchased in 2006 at a cost of...
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Swifty Company owns a 7,400-acre tract of timber purchased in 2006 at a cost of $1,443 per acre. At the time of purchase, the land was estimated to have a value of $343 per acre without the timber. Swifty Company has not logged this tract since it was purchased. In 2020, Swifty had the timber cruised. The cruise (appraiser) estimated that each acre contained 8,900 board feet of timber. In 2020, Swifty built 10 miles of roads at a cost of $8,140 per mile. After the roads were completed, Swifty logged and sold 3,885 trees containing 890,000 board feet. If Swifty plants five seedlings at a cost of $4 per seedling for each tree cut, how should Swifty treat the reforestation? Swifty should the cost of capitalize expense eTextbook and Media
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