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- DEPLETION ANALYSIS
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- 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.
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- 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
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- ENTER PRODUCTION LEVEL(-1 TO END)? 1
- DEPRECIATION CHARGES ARE $32098.70
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- ENTER 1 FOR NEW PRODUCTION LEVEL,2 FOR NEW ITEM,3 TO END? 3
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