Question
In: Accounting
On February 12,2021,Harvest Incorporated purchased the right to remove timber from a 13,000-acre tract of land...
On February 12,2021,Harvest Incorporated purchased the right to
remove timber from a 13,000-acre tract of land over the next four
years,and the company estimates no
residual value.The timber is to be sold as lumber for new
homeonstruction. The cost of the timber rights was$312,000,with
estimated salable timber feet of 780,000.During
2021 and 2022,Harvest harvested and sold.600,000 feet of
timber.What is the book value of the timber rights at the end of
2022,assuming the company uses the units-of-
production method?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
1. At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor...
1. At the beginning of 2021, Terra Lumber Company purchased a
timber tract from Boise Cantor for $4,200,000. After the timber is
cleared, the land will have a residual value of $600,000. Roads to
enable logging operations were constructed and completed on March
30, 2021. The cost of the roads, which have no residual value and
no alternative use after the tract is cleared, was $240,000. During
2021, Terra logged 500,000 of the estimated five million board feet
of timber....
2. Irene and Frank Adam plan to purchase an 80 acre tract of land valued at...
2. Irene and Frank Adam plan to purchase an 80 acre tract of
land valued at $2,200 per acre. The lender charges a $500 loan
application fee and $250 for a real estate appraisal. A stock
requirement of 5% of the loan amount (after addition of fees) is
required. The fees and stock requirement can be added to the
original loan amount. The original stock value will be returned
upon retiring the loan. The contractual rate is 8%. The fixed...
Jane and John Boilermaker wish to purchase a 40 acre tract of land valued at $1,900...
Jane and John Boilermaker wish to purchase a 40 acre tract of
land valued at $1,900 per acre. The lender charges a $500 loan
application fee and $250 for a real estate appraisal. Fees totaling
1% of the loan amount are also required to complete the loan. The
fees can be added to the original loan amount. The lender requires
$24,000 initial equity for this loan. The contractual interest rate
is 7%. The fixed annual payments are based on a...
2. Irene and Frank Adam plan to purchase an 80 acre tract of land valued at...
2. Irene and Frank Adam plan to purchase an 80 acre tract of
land valued at $2,200 per acre. The lender charges a $500 loan
application fee and $250 for a real estate appraisal. A stock
requirement of 5% of the loan amount (after addition of fees) is
required. The fees and stock requirement can be added to the
original loan amount. The original stock value will be returned
upon retiring the loan. The contractual rate is 8%. The fixed...
Oriole Realty Corporation purchased a tract of unimproved land for $132,000. This land was improved and...
Oriole Realty Corporation purchased a tract of unimproved land
for $132,000. This land was improved and subdivided into building
lots at an additional cost of $82,704. These building lots were all
of the same size but owing to differences in location were offered
for sale at different prices as follows.
Group
No. of Lots
Price per Lot
1
9
$7,200
2
15
9,600
3
17
5,760
Operating expenses for the year allocated to this project total
$43,680. Lots unsold at...
Larkspur Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and...
Larkspur Realty Corporation purchased a tract of unimproved land
for $55,000. This land was improved and subdivided into building
lots at an additional cost of $30,000. These building lots were all
of the same size but owing to differences in location were offered
for sale at different prices as follows.
Group
No. of Lots
Price per Lot
1
8
$3,600
2
17
4,800
3
15
2,880
Operating expenses for the year allocated to this project total
$17,000. Lots unsold at...
Shamrock Realty Corporation purchased a tract of unimproved land for $54,000. This land was improved and...
Shamrock Realty Corporation purchased a tract of unimproved land
for $54,000. This land was improved and subdivided into building
lots at an additional cost of $29,000. These building lots were all
of the same size but owing to differences in location were offered
for sale at different prices as follows.
Group
No. of Lots
Price per Lot
1
9
$3,300
2
17
4,400
3
19
2,640
Operating expenses for the year allocated to this project total
$18,000. Lots unsold at...
Waterway Realty Corporation purchased a tract of unimproved land for $126,500. This land was improved and...
Waterway Realty Corporation purchased a tract of unimproved land
for $126,500. This land was improved and subdivided into building
lots at an additional cost of $79,258. These building lots were all
of the same size but owing to differences in location were offered
for sale at different prices as follows.
Group
No. of Lots
Price per Lot
1
9
$6,900
2
15
9,200
3
17
5,520
Operating expenses for the year allocated to this project total
$41,860. Lots unsold at...
TP acquired a tract of land by way of gift from his parents. His parents purchased...
TP acquired a tract of land by way of gift from his parents. His
parents purchased the land in 1980 for $100,000, and gifted it to
him in 2010 when it had a fair market value of $500,000. In 2012,
TP built a 5 unit apartment building on the land at a cost of
$500,000. Accumulated depreciation to date totals $40,000. TP has
an agreement to sell the real estate for an adjusted sales price of
$1,500,000. He intends to...
Chris acquired a tract of land by way of gift from his parents. His parents purchased...
Chris acquired a tract of land by way of gift from his parents.
His parents purchased the land in 1980 for $100,000, and gifted it
to him in 2010 when it had a fair market value of $500,000. In
2012, Chris built a 5 unit apartment building on the land at a cost
of $500,000. Accumulated depreciation to date totals $40,000. Chris
has an agreement to sell the real estate for an adjusted sales
price of $1,500,000. He intends to...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Based on the loanable funds theory, explain how each of the following changes should impact interest...
- research paper: each student will be responsible for writing an argumentative research paper discussion a topic...
- In java based on the classes provided finish the program per the requirements: ----------------------------------------------Class1 package cardgame;...
- Identify two cultures and analyze the nurturing process within each culture and discuss the impact the...
- Digital security is an increasing concern is the Internet age. In order to protect sensitive information...
- the challenges experienced by companies considering full application of customer retention strategy in the face of...
- Respond to the following in a minimum of 175 words: The flow of a program is...
ADVERTISEMENT