A company purchased a tract of land for its natural resources at a cost of $1,000,000.
It expects to harvest 5,000,000 board feet of timber from this land.
The salvage value of the land is expected to be $200,000.
The depletion expense per board foot of timber is:
a. $0.75.
b. $0.24.
c. $0.20.
d. $0.16.
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