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1. Depreciation per ton = ( 954,000 - 31800) / 127200 = 7.25 per ton
Estimated depletion cost | ||
Year | Depletion | |
1 | 46,110 | [6360*7.25] |
2 | 92220 | [12720*7.25] |
3 | 92220 | |
4 | 92220 | |
5 | 92220 | |
6 | 92220 | |
7 | 92220 | |
8 | 92220 | |
9 | 92220 | |
10 | 92220 | |
11 | 46,110 | [6360*7.25] |
2. Depreciation per ton for Building = 38160 /127200 = 0.3 per ton [ 1st & 11th year =6360*0.3 =1908 ; 2- 10 = 12720*0.3 = 3816]
Machinery ( 1/2) depreciation per ton =31800 / 127200 = 0.25 per ton [ 1st & 11th year =6360*0.25 =1590 ; 2- 10 = 12720*0.25 = 3180]
Machinery ( 1/2) depreciation per ton =(31800 / 127200) *2 = 0.50 per ton [ 1st & 6th year =6360*0.25 *2 =3180 ; 2- 5 = 12720*0.25*2 = 6360]
Building | Machinery (1/2) | Machinery (1/2) | |
1 | 1908 | 1590 | 3180 |
2 | 3816 | 3180 | 6360 |
3 | 3816 | 3180 | 6360 |
4 | 3816 | 3180 | 6360 |
5 | 3816 | 3180 | 6360 |
6 | 3816 | 3180 | 3180 |
7 | 3816 | 3180 | 0 |
8 | 3816 | 3180 | 0 |
9 | 3816 | 3180 | 0 |
10 | 3816 | 3180 | 0 |
11 | 1908 | 1590 | 0 |
3. Depletion = 7.25 * 5300 = 38425
Depreciation = 5300 * 0. 3+ 5300 *0.25 + 5300 * 0.25* 2 = 5565
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