FINRA Series 7

Category - Series 7

In terms of depletion, percentage depletion is better than cost depletion because it:
  1. permits recovery of more than the original cost
  2. is limited to production
  3. is more widely available
  4. is not subject to recapture
Explanation
Answer: A - permits recovery of more than the original cost. Percentage depletion is only available for small producing wells.
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