If a Mining Company Extracts 1,500,000 Tonnes in a Period

Multiple Choice

If a mining company extracts 1,500,000 tonnes in a period but only sells 1,200,000 tonnes,

A) accumulated depreciation on the mine is based on the 1,200,000 tonnes.
B) depreciation included in cost of goods sold is based on the 1,500,000 tonnes extracted.
C) depreciation included in cost of goods sold is based on the 1,200,000 tonnes extracted and sold.
D) a separate accumulated depreciation account is set up to record depreciation on the 300,000 tonnes extracted but not sold.