If a Mining Company Extracts 1,500,000 Tons in a Period

question 59

Multiple Choice

If a mining company extracts 1,500,000 tons in a period but only sells 1,200,000 tons,

• A)total depletion on the mine is based on the 1,200,000 tons.
• B)depletion expense is recognized on the 1,500,000 tons extracted.
• C)depletion expense is recognized on the 1,200,000 tons extracted and sold.
• D)a separate Accumulated Depletion account is set up to record depletion on the 300,000 tons extracted but not sold.

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