A company acquires a natural resource for $1,400,000 and spends another $530,000 on development of the site and $320,000 for a nonmovable tangible asset installed at the site and $150,000 for tangible movable equipment. Both assets have an expected useful life of 10 years. The natural resource is expected to yield 140,000 units over its expected life. In year 1, 45,000 units are extracted from the resource. What depletion rate will be used? (Round your final answer to the nearest cent.)
A) $10.00 per unit
B) $13.79 per unit
C) $16.07 per unit
D) $17.14 per unit

Question

Quizplus · Accepted Answer

The Answer of A company acquires a natural resource for $1,400,000 and spends another $530,000 on development of the site and $320,000 for a nonmovable tangible asset installed at the site and $150,000 for tangible movable equipment. Both assets have an expected useful life of 10 years. The natural resource is expected to yield 140,000 units over its expected life. In year 1, 45,000 units are extracted from the resource. What depletion rate will be used? (Round your final answer to the nearest cent.)
A) $10.00 per unit
B) $13.79 per unit
C) $16.07 per unit
D) $17.14 per unit

A Company Acquires a Natural Resource for $1,400,000 and Spends