Which the Following Statements Regarding Accounting for Natural Resources Is

Which the following statements regarding accounting for natural resources is INCORRECT?

A) Natural resources are often called wasting assets because they are actually physically used up over time.
B) When the natural resource is extracted, the entity follows an approach much like the straight-line method of depreciation to account for the production.
C) If all of the natural resource that is extracted is regarded as sold, the amount depleted is transferred directly from long-term assets to the income statement as depletion expense.
D) The portion of the extracted natural resource that is not immediately sold, becomes inventory.