Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 38

A lumber company purchased a tract of land for $70,000 that contained an estimated 25,000 usable trees. The value of the land was estimated at $20,000. In the first year of operation, the lumber company cut down 5000 trees. According to the cost depletion method, the depletion deduction for year 1 is closest to:
A) $2000
B) $7000
C) $10,000
D) $14,000