In February 2018, Brilliant Industries purchased the Topaz Mine at a cost of $10,000,000. The mine is estimated to contain 500,000 carats of stone and to have a residual value of $500,000 after mining operations are completed. During 2018, 50,000 carats of stone were removed from the mine and sold. In this situation:

A) The book value of the mine is $9,000,000 at the end of 2018.

B) The amount of depletion deducted from revenue during 2018 is $950,000.

C) The amount of depletion deducted from revenue during 2018 is $1,000,000.

D) The mine is classified as an intangible asset and amortized over a period not to exceed 40 years

Answer rating: 100% (QA)

Amount of depletion for 2015 cos... View the full answer