Exhibit 11-04 Kieso Company Purchased a Tract of Land for $4,500,000 in $4,500,000

question 58

Multiple Choice

Exhibit 11-04
Kieso Company purchased a tract of land for $4,500,000 in anticipation of extracting 1,425,000 tons of ore. The residual value of the land is expected to be $480,000. The company mines 125,000 tons of ore in the first year.
-Refer to Exhibit 11-04, what is the unit depletion rate? Round to the nearest $0.01.)

• A) $3.16
• B) $3.50
• C) $2.82
• D) $3.00

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Definitions:

Technological Change

The introduction of new technologies and methods that increase productivity and may lead to economic growth and changes in how industries operate.

Labor Productivity

An indicator of economic efficiency that evaluates the quantity of goods and services generated relative to the hours of labor required to produce them.

Unemployment Rates

The share of the working population that is not employed but is in active pursuit of employment.

Improvements in Technology

Advances or upgrades in technological systems, processes, or products, leading to increased efficiency, productivity, or new capabilities.