Of the following costs related to the development of natural resources, which one is not a part of depletion cost?

Of the following costs related to the development of natural resources, which one is not a part of depletion cost?




a. Acquisition cost of the natural resource deposit
b. Exploration costs
c. Tangible equipment costs associated with machinery used to extract the natural resource
d. Intangible development costs such as drilling costs, tunnels, and shafts


Answer: C