15. Depletion is:

Select one:

a. An increase in the value of a natural resource when incurred

b. The process of allocating the cost of intangibles to periods when they are used

c. Also called amortization

d. Calculated using the double-declining balance method

e. The process of allocating the cost of natural resources to the period when it is consumed

16. A company purchased a tract of land for its natural resources at a cost of $1,400,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. If 150,000 tons of ore are mined during the first year, the journal entry to record the depletion is:

Select one:

a. Debit Depletion Expense $93,750; credit Accumulated Depletion $93,750

b. Debit Depletion Expense $105,000; credit Accumulated Depletion $105,000

c. Debit Depletion Expense $86,250; credit Accumulated Depletion $86,250

d. Debit Depletion Expense $86,250; credit Natural Resources $86,250

e. Debit Cash $105,000; credit Natural Resources $105,000