100+ Cost depletion PowerPoint (PPT) Presentations, Cost depletion PPTs

Cost depletion - PowerPoint PPT Presentation

Depreciation

Refers to decrease in value of an asset w/time. Important for 2 Reasons:. Info must be provided to shareholders. Income tax consequences (our main concern ). Depreciation. Thus, depreciation(D) reduces taxes by an. amt equal to depreciation times the tax rate.

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Depletion

Two types of depletion: Cost & Percentage. Cost depletion : Multiply factor by amt of resource removed. Where: factor, P t = First cost / Resource capacity. Depletion. Depletion applies to non-renewable assets (like natural resources).

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Cost depletion - PowerPoint PPT Presentation

Depreciation

Depletion