Depletion Method
Depletion Method of depreciation applies to natural resources such as coal, oil, gold and assets that naturally are not replaced as they are exploited. This method is similar to the production unit method and is based on the foll onformula.
Depreciation of Various Assets: Learning Objectives: How should the depreciation on various assets be calculated?. We discuss below the problem of depreciating some given assets. Freehold Land and Building: It means that land and building which has been purchased out right and not on
Depreciation Methods: Learning Objectives: What are the various methods for depreciation? Fixed assets differ from each other in their nature so widely that the same depreciation methods cannot be applied to each. The following methods have therefore been evolved for depreciating various assets: Fixed
Depletion Method of Depreciation: Learning Objectives: What is depletion method of depreciation? Explain with example. Depletion method of depreciation is especially suited to mines, quarries, sand pits, etc. According to it the cost of the asset is divided by the total workable deposits. In