SOS

On a balance sheet, natural resources may be de specifically as all of the following except a. land improvements. b. mineral deposits. c. oil reserves. d. timberlands. 19. Natural resources are a. depreciated using the units-of-activity method b. physically extracted in operations and are replaceable only by an act of nature. c. reported at their market value. d. amortized over a period no longer than 40 years. 20. Depletion is a. a decrease in market value of natural resources. b. the amount of spoilage that occurs when natural resources are extracted. c. the allocation of the cost of natural resources to expense. d. the method used to record unsuccessful patents The method most commonly used to compute depletion is the a. straight-line method. b. double-declining-balance method. c. units-of-activity method. d. effective interest method. 21. If a mining company extracts 1,500,000 tons in a period but only sells 1,200,000 tons, a. total depletion on the mine is based on the 1,200,000 tons. b. depletion expense is recognized on the 1,500,000 tons extracted. c. depletion expense is recognized on the 1,200,000 tons extracted and 22. sold. d. a separate accumulated depletion account is set up to record depletion on the 300,000 tons extracted but not sold