Order the answer to: NA Forest Resources purchased forest acreage for $500,000 from w

Best Writers business-economics Order the answer to: NA Forest Resources purchased forest acreage for $500,000 from w

business-economics

Order the answer to: NA Forest Resources purchased forest acreage for $500,000 from w

Question NA Forest Resources purchased forest acreage for $500,000 from which an estimated 200 million board feet of lumber is recoverable. The company will sell the lumber for $0.10 per board foot. No lumber will be sold for the next 2 years because an environmental impact statement must be completed before harvesting can begin. In years 3 to 10, however, the company expects to remove 20 million board feet per year. The inflation rate is 8%, and the company’s is 10%. (a) Determine the depletion amount in year 2 by the cost depletion method. (b) Determine the depletion amount in year 5 by the percentage depletion method.
Subject business-economics
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