Forda Lumber Company owns a 14,490-acre tract of timber purchased in 2007 at a cost of $2,691 per acre.

Forda Lumber Company owns a 14,490-acre tract of timber purchased in 2007 at a cost of $2,691 per acre. At the time of purchase, the land was estimated to have a value of $621 per acre without the timber. Forda Lumber Company has not logged this tract since it was purchased. In 2014, Forda had the timber cruised. The cruise (appraiser) estimated that each acre contained 16,560 board feet of timber. In 2014, Forda built 10 miles of roads at a cost of $16,229 per mile. After the roads were completed, Forda logged and sold 7,245 trees containing 1,759,500 board feet.

Determine the cost of timber sold related to depletion for 2014.

Cost of Timber sold $

If Forda depreciates the logging roads on the basis of timber cut, determine the depreciation expense for 2014.

Depreciation Expense $

If Forda plants five seedlings at a cost of $8 per seedling for each tree cut, how should Forda treat the reforestation?

Ford should capitalize or expense the cost of $ ________ and adjust the depletion the next time the timber is harvested.