Of the following costs related to the develop?ment of natural resources, which one is not a part of depletion cost?
A) Acquisition cost of the natural resource deposit
B) Exploration costs
C) Tangible equipment costs associated with machinery used to extract the natural resource
D) Intangible development costs such as drilling costs, tunnels, and shafts

Question

Quizplus · Accepted Answer

Tangible equipment costs associated with machinery used to extract the natural resource are not considered part of depletion cost. Depletion cost typically includes the acquisition, exploration, and development costs directly associated with the natural resource deposit, but not the machinery or equipment used for extraction.

Of the Following Costs Related to the Develop?ment of Natural