An activity-based method is most often used to allocate the cost of a natural resource over its useful life because: Multiple Choice The usefulness of natural resources generally is directly related to the amount of the resources extracted. This is the simplest method, and natural resource activity is hard to estimate. This method generally results in the highest amount of assets in the later years. This method generally results in the highest amount of assets in the earlier years.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.