Depletion expense is recorded for natural resources that a business uses in its operations. If a company uses/mines 10% of its natural resources and the total cost of those resources was $1,000,000, how would the company reflect this on its financial statements?

Group of answer choices

Depreciation Expense of $100,000 and a direct reduction to the natural resources asset account of $100,000

Depletion Expense of $100,000 and Accumulated Depletion of $100,000

Depreciation Expense of $100,000 and Accumulated Depreciation of $100,000

Depletion Expense of $100,000 and a direct reduction to the natural resources asset account of $100,000

Question

Depletion expense is recorded for natural resources that a business uses in its operations. If a company uses/mines 10% of its natural resources and the total cost of those resources was $1,000,000, how would the company reflect this on its financial statements?

Group of answer choices

Depreciation Expense of $100,000 and a direct reduction to the natural resources asset account of $100,000

Depletion Expense of $100,000 and Accumulated Depletion of $100,000

Depreciation Expense of $100,000 and Accumulated Depreciation of $100,000

Depletion Expense of $100,000 and a direct reduction to the natural resources asset account of $100,000

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Question

Depletion expense is recorded for natural resources that a business uses in its operations. If a company uses/mines 10% of its natural resources and the

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