Roan CorpAcquired a Tract of Land Containing an Extractable Natural Resource

question 22

Multiple Choice

Roan Corp.acquired a tract of land containing an extractable natural resource.The company is required by the government to restore the land to a condition suitable for recreational use after it has extracted the natural resource.Geological surveys estimate that the recoverable reserves will be 6.2 million tons, and that the land will have a value of $1.2 million after restoration.Relevant cost information follows: If Roan maintains no inventories, what is the depletion charge per ton of extracted resource?

• A)$1.00
• B)$1.32
• C)$1.44
• D)$1.63

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Definitions:

Ejaculate

The release of semen from the male reproductive system, often occurring at the climax of sexual arousal.

Type A Behavior

A personality pattern characterized by aggressiveness, competitiveness, impatience, and a constant sense of urgency.

Competitiveness

The drive or inclination to strive for success or superiority over others in situations such as sports, academics, or business.

Impatience

A feeling of frustration or eagerness often resulting from having to wait or from slow progress.