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Determine the cost of timber sold related to depletion for 2017.Martinez Company owns a 8,330-acre tract...

Determine the cost of timber sold related to depletion for 2017.Martinez Company owns a 8,330-acre tract of timber purchased in 2003 at a cost of $1,547 per acre. At the time of purchase, the land was estimated to have a value of $357 per acre without the timber. Martinez Company has not logged this tract since it was purchased. In 2017, Martinez had the timber cruised. The cruise (appraiser) estimated that each acre contained 9,520 board feet of timber. In 2017, Martinez built 10 miles of roads at a cost of $9,330 per mile. After the roads were completed, Martinez logged and sold 4,165 trees containing 1,011,500 board feet.

A) Determine the cost of timber sold related to depletion for 2017.--

B) If Martinez depreciates the logging roads on the basis of timber cut, determine the depreciation expense for 2017--

C) If Martinez plants five seedlings at a cost of $5 per seedling for each tree cut, how should Martinez treat the reforestation? Capitalze of expense? And how much?

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