A Drilling Company Purchased a Mining Site for $450,000 on July

question 24

Multiple Choice

A drilling company purchased a mining site for $450,000 on July 1, 2016.The company expects to mine ore for the next 10 years and anticipates that a total of 80,000 tons will be recovered.During 2016, the company extracted 5,800 tons of ore.The depletion expense for the year 2016 is:

• A) $45,000.
• B) $50,800.
• C) $5,860.
• D) $32,625.

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Definitions:

Intense

A term describing a high degree of strength, concentration, or seriousness of something like emotions, situations, or activities.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Lethargic

Describes a state of sluggishness, drowsiness, or lack of energy.

Negative Affect

A mood dimension that consists of emotions such as nervousness, stress, and anxiety at the high end and relaxation, tranquility, and poise at the low end.