Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Conan O'Brien Logging and Lumber Company own 3,700 acres of timberland on north side of Mount Leno, which was bought in 2000 at a cost of $610 per acre. In the year 2012, O'Brien starts selectively logging this timber tract. In May of 2012, Mount Leno erupted, burying the timberland of O'Brien beneath a foot of ash. All of the timber on the O'Brien tract was downed. Additionally, the logging roads, built at a cost of $160,000, were destroyed, and also the logging equipment, with a total book value of $309,900.

At the time of the eruption, O'Brien had logged 20% of the estimated 520,000 board feet of timber. Prior to the eruption, O'Brien estimated the land to encompass a value of $270 per acre after the timber was harvested. O'Brien comprises the logging roads in the depletion base.

O'Brien estimates it will take 3-years to salvage the downed timber at a cost of $744,600. The timber can be sold for pulp wood at an estimated price of $3 per board foot. The value of land is unknown, however should be considered nominal due to future uncertainties.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915890

Have any Question? 


Related Questions in Basic Finance

1 discuss reasons why the capital structure of an mncs

1. Discuss reasons why the capital structure of an MNC's subsidiary might differ from the parent company. 2. Why might the capital structures of companies from different countries differ? 3. What is the role of commercia ...

How would the following events affect the demand for

How would the following events affect the demand for loanable funds in the United States? a. Many U.S. cities increase business taxes to help close their budget deficits. b. Widespread use of handheld computers helps red ...

1 what three rules govern the construction of a grouped

1. What three rules govern the construction of a grouped frequency distribution? 2. What is the difference between a histogram and a bar graph? 3. Distinguish among the median, mode, and mean.

What is the purpose of risk management industry standards

What is the purpose of risk management industry standards? What responsibilities does senior management assume in a risk management system? What is the most important component of an effective risk management system? Bri ...

1 what is meant by value-added services why are these

1. What is meant by value-added services? Why are these services considered essential in a customer success program? 2. How could a company use the four-stage process of cost-effectiveness, market access, market extensio ...

1 what forces have been driving the increased

1. What forces have been driving the increased internationalization of business? 2. Explain the different orientations to international business that can be found among executives. 3. What are the various situations in w ...

1 when and why would nonprobability sampling methods be

1. When and why would nonprobability sampling methods be used? 2. Under what conditions is sampling bias likely to occur, what are its effects on generalization, and how can it be avoided? 3. Indicate the similarities an ...

1 labor budget calculating the fixed labor budget instead

1. Labor budget: calculating the fixed labor budget. Instead of the benefits stated in Exhibit l.4e, assume that all benefits are 210/6 and all raises are 3.5% and calculate the fixed labor budget for January, February, ...

Assignmentanswer questions-what are the two principal ways

Assignment Answer questions: -What are the two principal ways in which Congress and state legislatures exercise oversight of administrative agencies? -In what ways does the budgeting process lend itself to political cont ...

The following is an excerpt taken from a november 30 2007

The following is an excerpt taken from a November 30, 2007, speech entitled "Innovation, Information, and Regulation in Financial Markets" by Federal Reserve Governor Randall S. Kroszner (www. federalreserve.gov/newseven ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen