I believe it's B but I am not positive. I'm taking the test right now.
Answer:
The solution is shown in the file attached below
Explanation:
Depreciating means to become less valuable over time, so I believe the correct answer is <span>b. become less valuable over time.</span>
The demand of that product decreases only the few who can afford will purchase and the cause of higer prices on aproduct may b due to increement in taxes on acommodity by the gov't
Answer:
depletion of the timber tract = $228,000 and
depreciation of the logging roads = $22,800
Explanation:
Timber tract
Depletion rate = (Cost - Residual Value) ÷ Estimated units
= ($2,950,000 - $670,000) ÷ 5,700,000
= $0.40
Depletion expense = Units used x Depletion rate
= 570,000 x $0.40
= $228,000
Logging Roads
Depreciation rate = (Cost - Residual Value) ÷ Estimated units
= ($228,000 - $0) ÷ 5,700,000
= $0.04
Depreciation expense = Units used x Depreciation rate
= 570,000 x $0.04
= $22,800
