| Question | A lumber company purchased a tract of land for $70,000 that contained an estimated 25,000 usable trees. The value of the land was estimated at $20,000. In the first year of operation, the lumber company cut down 5000 trees. According to the cost depletion method, the depletion deduction for year 1 is closest to: (a) $2000 (b) $7000 (c) $10,000 (d) $14,000 |
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| Subject | business-economics |
