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On January 1, 2017, Whittle, Inc. purchased timber rights for $1,500,000. It is expected to produce a total of 2,000,000 cords of wood over 4
On January 1, 2017, Whittle, Inc. purchased timber rights for $1,500,000. It is expected to produce a total of 2,000,000 cords of wood over 4 years. The cords of wood cut were 200,000 in 2017. The effect of recording the 2017 depletion (not the sale of the wood) on the accounting equation is:
A. total assets remain unchanged.
B. total stockholders' equity decreases.
C. total assets decrease.
D. total liabilities increase.
C is wrong
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