In February 2009, Brilliant Industries Purchased the Topaz Mine at a Cost

Multiple Choice

In February 2009, 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 2009, 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 2009.
B) The amount of depletion deducted from revenue during 2009 is $950,000.
C) The amount of depletion deducted from revenue during 2009 is $1,000,000.
D) The mine is classified as an intangible asset and amortized over a period not to exceed 40 years.