Bedford Ridge Development purchased a 5,000-acre tract of forested land in southern Georgia. The tract contained about 1,500,000 pine trees that, when mature, can be used for utility poles. Bedford paid $900 per acre for the timberland. The land has a residual value of $180 per acre when all the trees are harvested. During 2009, Bedford harvested 150,000 trees.
1. Compute the depletion per tree.
2. Prepare the journal entry to record the harvesting of the trees for 2009.