Navajo Mining Company Purchased a Mine in 2013 for $3,400,000

question 87

Multiple Choice

Navajo Mining Company purchased a mine in 2013 for $3,400,000.It was estimated that the mine contained 200,000 tons of ore and that the mine would be worthless after all of the ore was extracted.The company extracted 25,000 tons of ore in 2013 and 30,000 tons of ore in 2014. What is depletion expense for 2013?

• A) $340,000
• B) $680,000
• C) $510,000
• D) $425,000

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Definitions:

Clan Control

The influence of behavior through norms and expectations set by the organizational culture.

Collective Identity

The shared sense of belonging to a group, which shapes the members' perceptions, actions, and interactions within the group.

Power

The capacity or ability of individuals or organizations to direct or influence the behavior of others or the course of events.

Bureaucratic Control

The influence of behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision.