Question

of the following costs related to the development of natural resources, which one is not a part of depletion cost

Answer 1

Tangible equipment costs associated with machinery used to extract the natural resource

What is Tangible equipment?

A tangible asset is one with physical substance. Inventory, a building, rolling stock, manufacturing equipment or machinery, and office furniture are all examples.

Any item that can be physically touched, moved, seen, weighed, measured, or picked up is considered a tangible good. A car, a printed book, clothing, tools, flowers, furniture, or DVDs are all examples of tangible goods.

It is possible to touch something that is literally tangible. A rock, like a broken window, is tangible; if the rock is lying next to the window, it could be tangible evidence of vandalism. When we say that the tension in a room is tangible, we mean that we can feel it so strongly that it almost feels physical.

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