              DEPLETION ANALYSIS                                                
                                                                                
DEPLETION REFERS TO EXHAUSTING NATURAL RESOURCES. DEPRECIATION                  
CHARGES, WHEN COMPUTED BY THE DEPLETION METHOD ARE PROPORTIONAL                 
TO THE PRODUCTION LEVEL. THIS IS BECAUSE, IN THE CASE OF                        
NONREPLACEABLE NATURAL RESOURCES, WHEN THE RESOURCE IS USED                     
UP THEN THE LAND USED IS OF NO MORE VALUE FOR THAT PURPOSE.                     
IF SOME ESTIMATE CAN BE MADE OF THE TOTAL PRODUCTIVE OUTPUT                     
OF A MINE, E.G. AND OF THE COST OF THE MINE TO DEVELOP THEN                     
IN A YEAR IN WHICH 10% OF THE TOTAL PRODUCTIVE OUTPUT IS MINED                  
10% OF THE ORIGINAL VALUE OF THE MINE WOULD BE USED AS THE                      
DEPRECIATION AMOUNT.                                                            
                                                                                
PRESS ENTER TO BEGIN?                                                           
COST OF PURCHASE & DEVELOPMENT        ? 234567                                  
FINAL SALVAGE VALUE ESTIMATE          ? 1234                                    
TOTAL REPAIR COST OVER LIFE           ? 87654                                   
ESTIMATE OF LIFETIME PRODUCTIVE OUTPUT? 10                                      
                                                                                
ENTER PRODUCTION LEVEL(-1 TO END)? 1                                            
DEPRECIATION CHARGES ARE         $32098.70                                      
                                                                                
ENTER 1 FOR NEW PRODUCTION LEVEL,2 FOR NEW ITEM,3 TO END? 3                     
