              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
