On January 1,2017,Whittle,Inc

Multiple Choice

On January 1,2017,Whittle,Inc.purchased timber rights for $1,500,000.It is expected to produce a total of 2,000,000 cords of wood over 4 years.The cords of wood cut were 200,000 in 2017.The effect of recording the 2017 depletion (not the sale of the wood) on the accounting equation is:

A) total assets remain unchanged.
B) total stockholders' equity decreases.
C) total assets decrease.
D) total liabilities increase.