The costs required to return property (from which a natural resource is extracted) to its original condition after the removal of the natural resource is not included in the cost of the natural resource in the books of the company.

Question

Quizplus · Accepted Answer

The costs required to return property to its original condition after resource extraction are considered part of the asset's cost and are capitalized as part of the natural resource's depletion base.

The Costs Required to Return Property (From Which a Natural