657Civil EngineeringMedium
Using factor method, the depletion at any given year is equal to?
AInitial cost of property divided by the total units in property
BInitial cost of property times number of units sold during the year
CInitial cost of property times number of unit sold during the year divided by the total units in property
DInitial cost of property divided by the number of units sold during the year
Correct answer
C. Initial cost of property times number of unit sold during the year divided by the total units in property
Explanation
The correct answer is Initial cost of property times number of unit sold during the year divided by the total units in property.