When the usefulness of plant assets used to extract natural resources is directly related to the depletion of a natural resource, their costs are depreciated using the units-of-production method of depreciation, as long as the assets will not be moved to and used at another site when extraction of the natural resources is complete.

Question

Quizplus · Accepted Answer

The statement accurately describes the units-of-production method of depreciation for plant assets used in natural resource extraction where their usefulness is directly related to resource depletion and they are not expected to be moved to different sites.

When the Usefulness of Plant Assets Used to Extract Natural