A Gravel Pit Is Purchased for $200,000 and Has Expected

question 56

Multiple Choice

A gravel pit is purchased for $200,000 and has expected usable gravel equal to 40,000 truck loads,with yearly production as follows (in truck loads) : year 1 -10,500 ;year 2 - 9,600 ;year 3 - 8,300 ;year 4 - 6,700 ;year 5 - 4,900.When all the usable gravel has been extracted,the land can be sold for $30,000.What is the book value of the land after 3 years?

• A)$120,700
• B)$79,300
• C)$58,000
• D)$49,300

---

Definitions:

Natural Laws

Fundamental physical laws that govern the behavior and structure of the natural universe.

Catastrophic Events

Large-scale disasters or significant events with the potential to cause sudden and severe damage to life, property, and the environment.

Natural Theology

The study or theory of knowledge about God and the nature of religious beliefs, based on the observation of the natural world.

Mechanical Function

The role or operation of a structure or system based on the principles of mechanics, often referring to how physical forces influence biological processes or man-made devices.