Using it causes a company to use
higher income in the early years of the asset's useful life
The results are identical to straight-line
depreciation
Question 22. Question :
A company purchased a tract of
land for its natural resources at a cost of $1,500,000. 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. The
depletion expense per ton of ore is:
$0.75
$0.625
$0.875
$6.00
$8.00
Question 23. Question :
A promissory note received
from a customer in exchange for an account receivable:
Is a cash equivalent for the recipient
Is an account receivable for the
recipient
Is a note receivable for the recipient