1.A)

On June 5, 2019, Mabel Company purchased an oil well for $850,000. The well contains an estimated $85,000 barrels of oil, with an estimated residual value of zero. During July, 2019, $25,500 barrels of oil were removed from the well. All of the oil went into inventory. What amount of Depletion Expense is recorded in July, 2019? (Round your final answer to the nearest dollar.)

A) $0.

B) $850,000.

C) $85,000.

D) $255,000.

1.B)

When determining the rate of return on assets:

A) the DuPont model breaks return on assets down into three component ratios that drive it.

B) the DuPont model calculates the rate of return on assets as the net profit margin ratio times total asset turnover.

C) it is important for companies to develop strategies to decrease total asset turnover.

D) total asset turnover measures how much every sales dollar generates in profit.