Key points from ISA 200 (Overall objective of independent auditor and the conduct of an audit in accordance with ISAs

Test your financial accounting knowledge #174

If a business is mining for a coal; land purchased $80,000, exploration cost $10,000, development cost $20,000, residual value $5,000, Expected 100,000 tones, and extracted 20,000 tones in first year, then what will be the depletion expense for the first year?

  1. 24,500
  2. 22,000
  3. 21,000
  4. 26,800

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