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Problem 1: Depletion expense
a) Includes tangible equipment costs in the depletion base.
b) Is usually part of cost of goods sold.
c) Excludes intangible development costs from the depletion base.
d) Excludes restoration costs from the depletion base.
Problem 2: If an industrial firm uses the units-of-production method for computing depreciation on its only plant asset, factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will
a) Be constant.
b) Vary with unit sales.
c) Vary with sales revenue.
d) Vary with production.
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