The cost associated with taking off natural resource accounts at the end of an accounting period. The amount is also recorded as accumulated depreciation.
Related information about depletion expense:
- Accounting Principles I: Natural Resources
Depletion expense is generally calculated using the units-of-activity method. Under this method, a per-unit cost of depletion is found by dividing the depletable ...
- What is depletion expense? definition and meaning
Definition of depletion expense: The cost associated with taking off natural resource accounts at the end of an accounting period. The amount is also recorded ...
- How to Calculate for Depletion Expense on a Schedule E | eHow.com
How to Calculate for Depletion Expense on a Schedule E. Depletion is similar to depreciation, where you can deduct the cost of an asset over the life of the asset ...
- depletion expense definition | AccountingCoach.com
Amount of depletion charged to expense on the income statement for the period indicated.
- Depletion
Leasehold Cost - Prior Total Allowed Depletion = Net Leasehold Cost x Cost Depletion Factor = Cost Depletion Expense. The calculation for % Depletion would ...
- Depletion Expense | Formula | Example | Journal Entry
Depletion is an accounting concept which is similar to depreciation but it is mostly used in timber, mining and mineral oil extraction industries to refer to the ...
- Depletion Method - AccountingTools
Thus, if you extract 500 barrels of oil and the unit depletion rate is $5.00 per barrel, then you charge $2,500 to depletion expense. The estimated amount of a ...
- depletion Definition | Business Dictionaries from AllBusiness.com
The entry for recording annual depletion is to debit depletion expense and credit accumulated depletion. Accumulated depletion is a contra account to the ...