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on february 12, 2024, a company purchased the right to remove timber from a 24,000-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 home construction. the cost of the timber rights was $356,000, with estimated salable timber feet of 890,000. during 2024 and 2025, the company harvested and sold 780,000 feet of timber. what is the book value of the timber rights at the end of 2025, assuming the company uses the units-of-production method?

Respuesta :

The book value of the Timber rights was estimated to have been 240,000 Dollars on the go.  

What is the book value?

A Book's valuation in accounting is its worth as represented by the sum in its financial statement. Book values are calculated by deducting depreciation, amortization, and impairment costs from the original cost of the asset.

All claims superior to equity capital (such as the company's liabilities) are deducted from the obtaining and analyzing of the firm's profits to determine book value. The accountant of documenting capital value just at an original historical price in the books is where the phrase "book value" originates.

Learn more about the Book Value here:

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