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. 

e). $0.04.

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Cost of tract of land for its natural resources cost 1000000 Board ... View the full answer